RIL to raise $2 billion from international markets

09 Nov 2006

Mumbai: Reliance Industries Ltd, the Mukesh Ambani group flagship, will raise $2 billion through issue of bonds in the international markets.

The funds may be raised by way of syndicated loan, foreign currency convertible bonds or any other combination, subject to requisite approvals, RIL said in a filing with the Bombay Stock Exchange (BSE).

The board of directors of RIL has approved a proposal for raising $2 billion (about Rs9,000 crore), the note said.

RIL had earlier said these funds would be used for oil and gas exploration and production projects.

Reliance had earlier announced plans to link Kakinada and Basudebpur, the landing points of its two mega gas sources, the D6 block in the Krishna Godavari basin and the NEC-25 block off the Orissa coast with an 890 km pipeline.

Kakinada in Andhra Pradesh is the landfall point for gas coming from the D6 block, where as gas from the NEC-25 block will land at Basudebpur in Orissa.

Current estimates put RIL`s discoveriesof gas reserves from these two blocks stand at over 25 trillion cubic feet.