Reliance Industries Ltd has raised a debt of $550 million for part-financing the proposed expansion of its petrochemical plant, setting up of a new gasification plant and refinery off-gas cracker unit, over the next two to three years, a statement issued by the company said.

The debt has been co-financed by Japan Bank for International Cooperation (JBIC) and Japanese banks backed by Nippon Export and Investment Insurance (NEXI). It is the eight occasion for the company to raise a large debt using an export credit agency.

JBIC will provide direct financing of up to $330 million and the Japanese banks, supported by a 95 per cent NEXI insurance cover, will finance up to $220 million.

This debt facility will have a door-to-door tenor of twelve years and will be used to finance contracts for the import of goods and services signed with more than 20 Japanese suppliers.

The participating banks are Bank of Tokyo-Mitsubishi UFJ, Sumitomo Mitsui Banking Corporation, Mizuho Bank and three regional Japanese banks namely Gunma Bank, Hachijuni Bank and Chiba Bank.

With this facility, NEXI has established a new insurance programME that extends support to Japanese regional banks for financing such overseas projects, the statement said.

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