Reliance Industries Ltd (RIL) has kicked off a new financing programme for 2005-06. It has re-entered the offshore debt market with a mandate for a fresh five-year $250 million multi-currency syndicated loan facility. |
Proceeds of this transaction are intended to be used for RIL's ongoing capital expenditure programme, an company release said. |
The new mandate closely follows RIL's $350 million multi-currency syndicated loan facility, which closed successfully in March 2005 with a tremendous response from participating banks. |
The latest transaction is being lead arranged by ABN AMRO Bank NV, Bank of America NA, The Bank of Tokyo-Mitsubishi Ltd., Calyon, DBS Bank Ltd and The Hong Kong and Shanghai Banking Corporation Limited. |
This multi-currency borrowing provides banks with an option to participate in a combination of Japanese yen, US dollar and euro, signifying the diversified international investor base for RIL paper. |
The $350 million deal witnessed participation by a diversified group of 34 international banks. The released quoted Alok Agarwal, president finance, RIL, saying, "This financing represents our effort, through our global relationship banks, to diversify our international investor base even further." |
John Corrin, the head of syndications for Asia Pacific for Calyon, on behalf of the group of lead arrangers said, "We are pleased to be associated with India's premier private sector corporate for this transaction." |
RIL, flagship of the Reliance group, is the country's largest private sector company with a turnover of Rs 73,164 crore and a net profit of Rs 7,572 crore in 2004-05. |