Reliance inks a US$2 bln equivalent loan with 9 banks covered by Euler Hermes Deutschland AG

11-May-12

Reliance Industries has moved forward with its plans for petrochemical expansion by raising US$2 bln loan from German banks. The facility has a door-to-door (tenure) maturity of 13 years and is backed by leading German credit insurance provider Euler Hermes SA, inked with nine banks. The loan will be utilized to finance goods and services procured from German suppliers as part of RIL's petrochemicals expansion projects at Jamnagar, Hazira, Silvassa and Dahej. This deal helps diversify RIL's funding sources and extends the maturity profile of its long term debt in a cost effective manner. Over the next 4-5 years, RIL is investing over US$12 bln in the refining and petrochemical industries. This includes investment of US$4 bln petroleum coke gasification project to produce synthetic natural gas that will replace expensive LNG as fuel, and US$8 bln on adding capacities of PFY, PET, polyester and intermediate chemicals such as PTA and paraxylene, besides adding new products such as carbon black and rubber. The nine banks include KfW IPEX-Bank GmbH, Citibank, Commerzbank AG, Nord LB, Banco Santander, Landesbank, Baden-Wurttemberg, DZ BANK AG, BHF-BANK AG and ING Bank (a Branch of ING-DiBa AG).