Reliance Industries to raise $225 mn overseas

Reliance Industries Limited (RIL) is raising $225 million at 2.512 percent interest with a guarantee from the Export-Import Bank of the US, set to be a first for a private sector energy company.

The 11-year-tenure issue is also the longest globally by a company not in the business of aviation, a Reliance Industries statement said on Thursday.

"The proceeds of these fixed-rate notes will be utilised by the company to replace a portion of the Ex-Im Bank-guaranteed floating rate loan that was availed to finance the capital expenditure at the company's Jamnagar site in India," the statement said.

"The principal amount of the notes will be payable in consecutive semi-annual installments commencing on July 15, 2016, up to maturity on January 15, 2026," it added.

In the company's annual general meeting on June 12, RIL chairman Mukesh Ambani said that the company was building a world-scale 1.5 million tonne ethylene cracker unit in Jamnagar, due for start in the third quarter of the next financial year.

He said this was part of an investment of over Rs.200,000 crore in building new facilities and creating new business that come into fruition in 12-18 months.