Reliance Industries raises $2 billion loan

Mumbai, May 9 (IANS) Reliance Industries Ltd (RIL) Wednesday said it has signed deals with nine banks to raise $2 billion in loans to finance procurement of goods and services from Germany for expansion of its petrochemicals projects.

The Mukesh Ambani-run RIL signed the deals May 7 in Berlin with banks covered by Euler Hermes Deutschland AG. The loan has 13 years maturity period.

The loan will be primarily used to finance goods and services procured from German suppliers as part of RIL's petrochemicals expansion projects at Jamnagar, Hazira, Silvassa and Dahej in India, RIL said in a statement.

"This deal received strong support from international banks, particularly from German lending institutions. The better than sovereign assessment by Euler Hermes is a strong testimony of RIL's credit standing in the international markets," V. Srikanth, joint chief financial officer, RIL, said in a statement.

This deal will help the company diversify funding sources and extends the maturity profile of its long term debt in a cost effective manner.