Reliance Industries rose 0.36% to Rs 971.80 at 9:17 IST on BSE after the company said it has signed loan co-financed by JBIC and Japanese banks backed by Nippon Export and Investment Insurance for up to $550 million.
The announcement was made before market hours today, 23 April 2014.
Meanwhile, the S&P BSE Sensex was up 90.61 points or 0.4% at 22,848.98.
On BSE, so far 11,000 shares were traded in the counter as against average daily volume of 4.79 lakh shares in the past two weeks.
The stock hit a high of Rs 972.30 and a low of Rs 967 so far during the day.
In continuation of the fund raising programme initiated in FY 2012-13, Reliance Industries (RIL) said it has tied up Export Credit Agency (ECA) facility of up to $550 million co-financed by Japan Bank for International Cooperation (JBIC) and a group of other Japanese banks backed by Nippon Export and Investment Insurance (NEXI) to part finance the proposed expansion of its petrochemical plants and setting up new gasification plant and refinery off-gas cracker over the next two to three years. This is RIL's eighth ECA facility for the largest capital expenditure program it has undertaken, the company said in a statement.
RIL said that this is the first time that JBIC is extending credit to RIL. JBIC will provide direct financing of up to $330 million and Japanese banks, supported by a 95% NEXI insurance cover, will finance up to $220 million. The participating banks include The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd. and three regional Japanese banks namely The Gunma Bank Ltd., The Hachijuni Bank, Ltd. and The Chiba Bank, Ltd, RIL said in a statement.
This facility will have a door-to-door tenor of twelve years and will be used to finance contracts for imports of goods & services signed with more than 20 Japanese suppliers, including some SMEs and MMEs, RIL said in a statement.
With this facility, NEXI has established a new insurance program that extends support to Japanese regional banks' for financing such overseas projects. In addition to the aforesaid six Japanese banks, some more banks (Japanese regional banks) are expected to participate through a partial assignment of the contractual rights and obligations of NEXI covered portion, RIL said in a statement.
The deal is significant since JBIC is financing a buyers' credit facility with more than 20 Japanese suppliers including SMEs and MMEs. NEXI cover is not only provided for regional Japanese banks participating as the primary lenders but also for the regional Japanese banks joining the deal through syndication process, RIL said in a statement.
RIL's net profit rose 0.8% to Rs 5631 crore on 13.1% growth in net sales to Rs 95193 crore in Q4 March 2014 over Q4 March 2013.
RIL's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail and broadband services.
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