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Reliance Industries Ltd (RIL) today said it has raised $2-billion loan from German banks to finance its petrochemical plant expansion.
The facility has a door-to-door (tenure) maturity of 13 years and is backed by German credit insurance provider Euler Hermes SA.
“RIL has signed a $2 billion equivalent loan with nine banks covered by Euler Hermes Deutschland AG on May 7 at Berlin, Germany,” it said.
Euler Hermes is a leading credit insurance company in Germany.
The loan would be used to finance goods and services procured from German suppliers as part of RIL’s petrochemical expansion projects at Jamnagar, Hazira, Silvassa and Dahej.
The facility is among the largest underwriting by Euler Hermes in recent years, the statement said, adding that despite the challenging financial markets, the deal witnessed 50 per cent oversubscription. This deal helps diversify the company’s funding sources and extends the maturity profile of its long term debt in a cost effective manner.
RIL Joint CFO V Srikanth said the deal received strong support from international banks, particularly from German lending institutions.
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