SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL) announced on Wednesday it has secured a credit facility of up to $550m, which will partly finance the proposed expansion of its petrochemical plants and the setting up of a new gasification plant and refinery off-gas cracker over the next two to three years.
The export credit agency (ECA) facility is co-financed by the Japan Bank for International Cooperation (JBIC) and a group of other Japanese banks backed by Nippon Export and Investment Insurance (NEXI), RIL said in a statement.
“This is RIL’s eighth ECA facility for the largest capital expenditure program it has undertaken,” the company said.
RIL said that this is the first that JBIC is extending credit to the Indian conglomerate.
The facility has a tenor of 12 years, and will be used to finance contracts for imports of goods & services signed with more than 20 Japanese suppliers, it said.
JBIC will provide direct financing of up to $330m, while Japanese banks, supported by a 95% NEXI insurance cover, will finance up to $220m, RIL said.
The participating banks include The Bank of Tokyo-Mitsubishi UFJ, Ltd, Sumitomo Mitsui Banking Corp, Mizuho Bank, Ltd and three regional Japanese banks namely, The Gunma Bank Ltd, The Hachijuni Bank, Ltd and The Chiba Bank, Ltd.