Deutsche Bank signs 679cr buyer's credit for Reliance

Deutsche Bank AG and Reliance Industries Ltd signed a ¤116.2 million financing deal in Frankfurt which will be used to refinance the import of equipments for the expansion of Reliance's polyester plants in Hazira and Patalganga.

Petrochemical giant Reliance Industries is the India's largest private sector company.

Deutsche Bank acted as the mandated arranger of the finances which is split in two parts.

A ¤103.5 million facility has a tenure of 10.5 years and is covered by Germany through Euler Hermes Kreditversicherungs AG, Hamburg.

At a parallel level, supplies by the Italian company Salmoiraghi SpA, Monza, are financed by a ¤12.7 million facility with a tenure of nine years and covered by Italy's ECA SACE.

Two German companies, Barmag Zweigniederlassung der Saurer GmbH & Co, Remscheid and Zimmer AG, Frankfurt am Main, are major suppliers for this expansion project. For both, the supply contracts count among the largest in their history.

This financing marks the first time in 22 years that Reliance Industries has taken advantage of an ECA covered facility.

Reliance's excellent rating and the outstanding cooperation with the German government and Euler Hermes enabled Deutsche Bank to reduce the turnaround time from being awarded the mandate to receiving ECA coverage to only four weeks, a Deutsche Bank press release said.

With about ¤845 billion in assets and 65,400 employees, Deutsche Bank offers a suit of financial services in 74 countries throughout the world.

It ranks among the global leaders in corporate banking and securities, transaction banking, asset management and private wealth management.

It has a significant private and business banking franchise in Germany and other selected countries in continental Europe.