Reliance raises $2bn loan for India petrochemical expansion projects
Reliance Industries has signed a $2 billion-equivalent loan with nine banks covered by German credit insurance provider Euler Hermes, officials said on Thursday.
The loan will be primarily used to finance goods and services procured from German suppliers as part of Reliance’s petrochemicals expansion projects at Jamnagar, Hazira, Silvassa and Dahej in India.
This deal will help diversify the company’s funding sources and extends the maturity profile of its long term debt in a cost-effective manner, Reliance said.
“We are delighted with the support provided by Euler Hermes for this landmark financing,” said V. Srikanth, joint chief financial officer of Reliance.
“This deal received strong support from international banks, particularly from German lending institutions. The better than sovereign assessment by Euler Hermes is a strong testimony of RIL’s credit standing in the international markets.”
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