RIL raises US$550 mln loan from consortium of Japanese banks for its petrochemicals business

25-Apr-14

Reliance Industries Ltd (RIL) is raising US$550 mln (around Rs.3,338.50 crore) from a consortium of Japanese banks as part of the US$8 bln capital expenditure program it has planned for its petrochemicals business. The loan has been co-financed by Japan Bank for International Cooperation (JBIC) and a consortium of other Japanese banks led by Nippon Export and Investment Insurance (NEXI). The loan, the eighth such for RIL but the first from a set of Japanese banks, will part-finance the company’s mega petrochemicals expansion including the creation of a new gasification plant and refinery off-gas cracker over the next two to three years. This facility is for 12 years and will be used to finance contracts for imports of goods and services signed with more than 20 Japanese suppliers, including some small and medium enterprises. Under the terms of the loan, JBIC will provide direct financing of up to US$330 mln and Japanese banks, supported by a 95% NEXI insurance cover, will finance up to US$220 mln. The participating banks include the Bank of Tokyo-Mitsubishi UFJ Ltd, Sumitomo Mitsui Banking Corp., Mizuho Bank Ltd and three regional Japanese banks namely the Gunma Bank Ltd, the Hachijuni Bank Ltd and the Chiba Bank Ltd.