Reliance seeking upto US$1 bln of ECA-backed loan facilities

14-Dec-12

Reliance Industries, operator of the world’s biggest refining complex, plans two U.S. dollar- denominated offshore loans of about US$500 million each, backed by export credit agency guarantees, according to a person familiar with the matter, as reported by Bloomberg. HSBC Holdings Plc (HSBA) has been approached to arrange both facilities, the person said, asking not to be identified because the details are private. The first, of US$400-500 mln, will have a guarantee from Korea Trade Insurance Corp. (K-sure), and will mature in about six years. The second, also of about US$500 mln, will be backed by French export credit agency Coface SA and have a tenor of about 13.5- years. Reliance Industries is accelerating investments to boost output of natural gas and petrochemicals as it bets local demand will double by as early as 2017. The company has signed about US$4.3 bln of foreign- currency denominated loans this year, the most by any local borrower, according to data compiled by Bloomberg.