 | « Back to article | Print this article |
Mukesh Ambani-controlled Reliance Petroleum Ltd will raise $1.5 billion (nearly Rs 69 billion) through Syndicated Term Loan Facility to finance its new 580,000 bpd refinery and a 0.9 MT polypropylene unit.
A group of 14 lead managers will invite banks around the globe to participate in this landmark fundraising by RPL, a subsidiary of Reliance Industries Ltd.
"The loan facility comprises of $950 million 7.5 year tranche and a $550 million 10-year tranche with a blended average life of 6.6 years," RPL said in a statement.
The $1.5 billion syndicated loan facility is the single largest limited recourse financing mandated in the Asian market in recent years, excluding China.
The new project will be located in a Special Economic Zone adjacent to RIL's existing refinery in Jamnagar, Gujarat. RPL had offered a initial public offer for the same project in April this year.
The Rs 27,000 crore (Rs 270 billion) refinery project is expected to help transform India from a net importer to a net exporter of petroleum products, with target export markets including Europe, the United States and the far East.
Ater the new 580,000 barrel-a-day refinery project is completed by December 2008, the total capacity for the RIL-RPL Jamnagar site will be more than 1.2 million barrels per day, making the complex the world's biggest.
The configuration of the proposed refinery is expected to provide RPL the ability to optimise crude oil input, product slate and quality.
Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group