Reliance Secures Funds From Exim Bank Of The U.S
Reliance Industries Limited secured $2.1 bn loan from Export-Import Bank of the United States, which includes $1.06 bn direct loan and to guarantee a $1.06 bn JPMorgan Chase loan to the company.
The funds will be used to finance goods and services procured from exporters and suppliers in the US as part of Reliance's expansion projects at Jamnagar, BSE filing stated.
The transaction is the single largest Exim Bank has ever authorized for Reliance, and it represents Reliance's first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance.
In May RIL raised a $2 bn 13-year loan backed by German credit insurer Euler Hermes Deutschland AG for financing goods and services from German suppliers.
Earlier this year, Italy's SACE had guaranteed a $ 400 Mn loan to RIL for the expansion and upgrading of the production capacity of its petrochemical plants, a gasification plant and refinery off-gas cracker as part of an investment plan in India worth over $11 bn. Besides, RIL also raised $1.5 bn through bond issuance in February this year, taking its fresh borrowings this year to $6 bn.
Located on the Gulf of Kutch, the Jamnagar complex oversees the largest single-location refinery operation in the world.
Reliance intends to increase the complex's petrochemical output by constructing a petcoke gasification unit that will top the world's rosters in size and enhance the efficiency of the company's refinery business.
Reliance also plans to erect a refinery off-gas cracker with matching downstream units that will better integrate polymer and polyester production.
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