RIL raises $550m from Japanese banks

Reliance Industries Ltd (RIL) today said it has raised $550 million loan for part-funding expansion of its petrochemical plant and new gasification unit from Japanese banks.

"In continuation of the fund raising programme initiated in 2012-13, RIL has tied up Export Credit Agency (ECA) facility of up to $550 million co-financed by JBIC (Japan International Bank

for Cooperation) and a group of other Japanese banks backed by NEXI," the company said in a statement.

The 12-year loan will part finance the proposed expansion of RIL's petrochemical plants and setting up of new gasification unit and refinery off-gas cracker over the next 2-3 years.

"This is RIL's eighth ECA facility for the largest capital expenditure programme it has undertaken," it said.

This is the first time that JBIC is extending credit to RIL.

JBIC will provide direct financing of up to $330 million and Japanese banks, supported by a 95 per cent Nippon Export and Investment Insurance (NEXI) insurance cover, will finance up to $220 million.

The participating banks include The Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation, Mizuho Bank, and three regional Japanese banks namely The Gunma Bank, The Hachijuni Bank, and The Chiba Bank.

The facility will have a door-to-door tenor of twelve years and will be used to finance contracts for imports of goods and services signed with more than 20 Japanese suppliers.

Post new comment

E-mail ID will not be published
CAPTCHA
This question is for testing whether you are a human visitor and to prevent automated spam submissions.

EDITORIAL OF THE DAY

  • Let’s not get carried away over joint Indo-US action on terror

    Notwithstanding prime minister Narendra Modi’s successful visit to the Big Apple, there is need to guard against too many expectations over the so-c

FC NEWSLETTER

Stay informed on our latest news!

INTERVIEWS

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs

Chander Mohan Sethi

CMD, Reckitt Benckiser India

COLUMNIST

Simon J Evenett

Where the mind leads, actions follow

Whether in business, government, non-profits, or elsewhere, what assumptions underpin ...

Zehra Naqvi

Fading empathy in the modern world

The episode of a man being mauled to death by ...

Gautam Gupta

French fashion icon Gaultier’s pret goodbye

With Gaultier gone, the world of international prêt will never ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture