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RIL borrows Rs 500 cr for working capital

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BS Reporter Mumbai
Last Updated : Jan 20 2013 | 12:00 AM IST

Reliance Industries (RIL) raised Rs 500 crore on Tuesday for working capital through short-term finance.

The company arranged about 70 per cent of the amount from domestic banks and mutual funds, and the remaining from foreign institutions through issue of commercial paper, said sources.

“RIL’s daily working capital requirement is around Rs 10,000 crore and it keeps on changing with the crude oil price. The fund raised will be used to bridge the funding gap and repayment is expected to be completed in two months,” said company sources.

The company, India’s largest private refiner, sold five-month notes yielding 3.75 percent and rated ‘P1-plus’ by Crisil. Edelweiss Securities was the sole arranger.

The refiner is likely to raise some more short-term debt for bridging the shortfall in funds, said sources.

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