look news india
Reliance Industries Limited (RIL) has raised a loan of $ 3 billion from a consortium of 11 banks. This deal is the company’s biggest borrowing deal in the last two years. According to the report, the deal was finalized last month and the funds will be used to refinance existing debt maturing in 2025.
Loan Features and Terms
- Loan Tenure: 5 years.
- Interest Rate: This loan is taken at 120 basis points more than the three-month SOFR (Secured Overnight Financing Rate).
- SOFR Rate: SOFR was around 4.80% in December. By adding 120 basis points to this, the loan interest rate becomes approximately 6%.
- Loan in Japanese Yen: A loan of $450 million has been taken in Japanese Yen.
$700 million already used
According to the report, Reliance has utilized $700 million of this loan.
- The company is planning to raise more funds in the current quarter.
- More banks are expected to join the consortium by the end of this quarter.
Major banks participating in the loan
Below is the information about major banks disbursing loans:
| bank name | Loan Amount (USD Million) |
|---|---|
| Bank of America | 343 |
| DBS Bank and HSBC | 300 (each) |
| MUFG (Japan) | 280 |
| State Bank of India (SBI) | 275 |
| Standard Chartered, Mizuho Bank, SMBC (Japan) | 250 (each) |
Reliance’s rapid expansion
Reliance Industries has been expanding rapidly in its various businesses in recent years.
- Over the last 5 years: The company has spent approximately $13 billion on acquisitions made in renewable energy, telecommunications, retail and media businesses.
- Morgan Stanley Report: Reliance’s focus shifts from oil and petrochemicals to renewable energy and consumer-centric sectors.