MOSCOW (MRC) -- Reliance Industries Ltd. (RIL) signs loan co-financed by Japan Bank for International Cooperation (JBIC) and Japanese banks backed by Nippon Export and Investment Insurance (NEXI) for up to USD 550 million to part finance the proposed expansion of its petrochemical plants and setting up new gasification plant and refinery off-gas cracker over the next two to three years, said Noodls.
This is RIL's eighth ECA facility for the largest capital expenditure program it has undertaken. This is the first time that JBIC is extending credit to RIL. JBIC will provide direct financing of up to USD 330 million and Japanese banks, supported by a 95% NEXI insurance cover, will finance up to USD 220 million.
The participating banks include The Bank of Tokyo- Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and three regional Japanese banks namely The Gunma Bank Ltd., The Hachijuni Bank, Ltd. and The Chiba Bank, Ltd.
This facility will have a door-to-door tenor of twelve years and will be used to finance contracts for imports of goods & services signed with more than 20 Japanese suppliers, including some SMEs and MMEs.
With this facility, NEXI has established a new insurance program that extends support to Japanese regional banks' for financing such overseas projects. In addition to the aforesaid six Japanese banks, some more banks (Japanese regional banks) are expected to participate through a partial assignment of the contractual rights and obligations of NEXI
Reliance Industries Limited (RIL) is India's largest private sector company on all major financial parameters with a turnover of INR 401,302 crore (USD67.0 billion), cash profit of INR 30,795 crore (USD 5.1 billion) and net profit of INR 21,984 crore (USD3.7 billion) as of March 31, 2014. As MRC informed before, Reliance Industries Ltd. has reported a 7.9% year-on-year decline in its gross refining margin for the January-March quarter, to USD9.30/barrel.
MRC