RIL bags USD 2.1 bn loan from US Exim Bank
The Export Import (Exim) Bank of the United States has voted to provide USD 2.1 billion worth of direct loan and loan guarantee to Reliance Industries Ltd. (RIL), the company said in a statement Wednesday.
RIL said the loan, which includes a USD 1.06 billion direct loan and to guarantee a USD 1.06 billion JP Morgan Chase loan to the company, would help increase US exports to India.
According to the statement, the transaction is the single largest Exim Bank has ever authorised for Reliance and the loan will be primarily used to finance goods and services procured from exporters and suppliers in the US as part of RIL's expansion projects at Jamnagar, Gujarat.
In a separate release, the Exim Bank said the loan also represents Reliance's first attempt at funding through the capital markets with an Exim Bank-guaranteed bond issuance,
The credit will support approximately 12,300 jobs in the US, according to bank estimates derived from data from departments of commerce and labour. Moreover, six percent of the financing is expected to support American small businesses.
Located off the Gulf of Khambhat, the Jamnagar complex represents the largest single-location refinery operation in the world. RIL plans to construct a petcoke gasification unit that will greatly increase the efficiency of the company's refinery business.