US Ex-Im approves $2.1-bn credit to Reliance Industries
06 Dec 2012
The United States Ex-Im Bank (Ex-Im Bank) has approved a $2.1 billion line of credit to Reliance Industries Ltd (RIL) to support procurement from US suppliers.
The loan, approved on Wednesday, is the single largest Ex-Im Bank has ever authorised for Reliance, and it represents Reliance's first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance, RIL said in a release.
The $2.1 billion line of credit includes a $1.06 billion direct loan and a guarantee on another $1.06 billion JP Morgan Chase loan to the company.
The loan will be primarily used to finance goods and services procured from exporters and suppliers in the United States, as part of Reliance's expansion projects at Jamnagar, Gujarat.
''We are once again partnering with major US suppliers for cutting edge technology, critical project management services and equipment from a wide section of American exporters for rolling out our next phase of growth,'' Alok Agarwal, Reliance's chief financial officer, said.
''We value our long standing relationship with Ex-Im Bank and this landmark transaction further strengthens the partnership. This landmark transaction reaffirms the catalyst role played by Ex-Im Bank in facilitating trade between US and India. We also sincerely appreciate the role played by JP Morgan Chase in this important transaction for us,'' he added.