Reliance Industries Ltd. (RIL) has tied up Export Credit Agency (ECA) facility of up to $550 million, co-financed by the Japan Bank for International Corporation (JBIC) and a group of other Japanese banks backed by Nippon Export and Investment Insurance (NEXI), to part finance its proposed expansion.
To part finance expansionThis includes the expansion of its petrochemical plants and setting up new gasification plant and refinery off-gas cracker over the next 2-3 years.
This is the first time that the JBIC is extending credit to RIL. The JBIC will provide direct financing of up to $330 million and Japanese banks, supported by a 95 per cent NEXI insurance cover, will finance the balance.
The participating banks include Bank of Tokyo-Mitsubishi, Sumitomo Mitsui Banking Corporation, Mizuho Bank and three regional Japanese banks, namely, Gunma Bank, Hachijuni Bank. and Chiba Bank.
“This facility will have a door-to-door tenor of 12 years, and will be used to finance contracts for imports of goods and services signed with more than 20 Japanese suppliers, including some SMEs and MMEs,” RIL said in a statement.
