Billionaire industrialist Mukesh Ambani-led Reliance Industries is believed to have hired banking majors SBI, Bank of America and Citigroup, among others, to raise debt of about $1.1 billion.

The energy-to-retail conglomerate plans to utilise the fresh five-year term loan to refinance its existing higher interest rate debts, sources said.

When contacted, a company spokesperson did not comment on the debt raising plans.

The banks hired for raising $1.1 billion of loans include SBI, Stanchart, Bank of America, RBS, HSBC, ANZ Bank, Bank of Nova Scotia, Bank of Tokyo Mitsubishi UFJ, Barclays, BNP Paribas, Citigroup, DBS and Sumitomo Mitsui.

Earlier this month, Chairman and MD Mukesh Ambani, said at the company's AGM that RIL would become debt-free on net basis in the current financial year ending March 2012.

RIL had an outstanding debt of Rs 67,397 crore as of March 31, 2011, as against Rs 62,495 crore a year ago.

At the same time, RIL had cash and cash-equivalents of Rs 42,393 crore (as on March 31 this year, which was nearly double the level a year ago.

The company began the process of raising fresh loans worth about $1.5 billion.

Out of this, loans worth about $1.1 billion are for repaying its existing loans maturing in the next two years, while the company would also look at further $400-$500 million of fresh borrowings from abroad.

Last October, RIL had raised $1.5 billion for the first time through bonds denominated in US dollars.

While it raised USD $1 billion through 10-year bonds, another $500 million were arranged through sale of 30-year bonds. These funds were raised through RIL's wholly-owned subsidiary Reliance Holding USA Inc.

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