Reliance Sibur Elastomers avails term loan of $ 330 mn

Reliance Sibur Elastomers Pvt Ltd (RSEPL), a subsidiary of Reliance Industries Ltd, has signed agreement for availing a term loan facility of $ 330 million (about Rs 2193 crore) by way of external commercial borrowing (ECB). ECB, with door to door tenor of 10 years, will be utilised to part finance the capital expenditure to set up India's first butyl rubber manufacturing facility at Jamnagar, Gujarat. 

The said ECB will be secured by way of charge on the movable fixed assets of RSEPL pertaining to the project. This ECB is one of the longest tenor US dollar loan to date in Asia (ex Japan), since RIL's 10 year corporate loan for $ 2 billion in 2007.

RSEPL is a joint venture between RIL and Sibur, a leading Russian integrated gas processing and petrochemical company. RIL owns a majority stake of 74.9 percent in RSEPL, while the balance in held by Sibur.