BackRIL raises $550 mn loan from consortium of Japanese banks
The loan is a part of the $8 billion capital expenditure programme RIL has planned for its petrochemicals business
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Mumbai: Reliance Industries Ltd (RIL) on Wednesday said it is raising $550 million (around ₹ 3,338.50 crore today) from a consortium of Japanese banks as part of the $8 billion capital expenditure programme 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), said a press release issued by the company on Wednesday.
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.
Under the terms of the loan, JBIC will provide direct financing of up to $330 million and Japanese banks, supported by a 95% NEXI insurance cover, will finance up to $220 million.
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.
According to the RIL release, 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.
Shares of RIL closed 0.15% lower at ₹ 966.85 apiece on BSE, while the benchmark Sensex gained 0.52% to 22,876.54 points.
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