Reliance Industries Ltd (RIL), owner of the world’s largest oil-refining complex, approached banks seeking a five-year loan of about $1 billion (Rs 5,474 crore), according to people familiar with the matter.
The Mukesh Ambani-controlled company, has asked banks to respond with proposed term sheets by May 30, the people said, asking not to be identified. Tushar Pania, a spokesman at RIL, didn’t immediately respond to an e-mail on the financing. Reliance signed a 13-year loan equivalent to $2 billion (Rs 11,000 crore) backed by credit insurer Euler Hermes SA with nine banks, it said earlier this month.
That’s the largest such borrowing by India’s biggest energy company since May 2007 as credit investors’ confidence in the group surges, according to Bloomberg data.
Banks preparing to commit about $100 million to the new $1 billion facility are considering offering Reliance pricing of about mid-200 basis points more than the London interbank offered rate, one of the people said today.
Reliance has a $1.5 billion loan that matures May 2016, according to data compiled by Bloomberg. The facility, signed in December 2010, pays a margin of as much as 200 basis points more than Libor, the data show.