Reliance Industries Ltd board on Thursday approved the raising of $2 billion (Rs 9,000 crore) from foreign markets through either foreign currency convertible bonds, or syndicated loans or floating bonds.
The company may however have to look at ways to raise more funds soon to finance its investments in the D6 block itself as well as financing its acquisition ambitions.
Reliance has recently said that it will invest $5.2 billion in its KG basin block D6 instead of the $2.5 billion announced earlier.
This was necessitated as the company has doubled the production plan of the project. This apart, the company has also made a $2 billion offer for BP’s Belgian petrochemical plant and if that comes through, there would be needed to arrange for more finance with immediate effect.
The company had earlier said in a statement that its board would review the progress of the project on Thursday. Meanwhile PTI reported that Gail India Ltd is looking at farming in with Reliance in their exploration of the D6 block. This might be another way of bringing in extra funds for financing the expansion of the project.
The agency report further said that the proposed agreement between Reliance and Gail India Ltd may also go beyond the D6 block of KG basin and can look at other investments by GAIL in Reliance owned-blocks.
A Reliance Industries official did not comment on the issue of financing or the GAIL contract.
News agency UNI has reported that “Anil Ambani-owned Reliance Natural Resources Ltd (RNRL) has alleged that Mukesh Ambani's Reliance Industries Ltd (RIL) has ‘acted in a malafide manner to frustrate the gas deal’ reached by the two brothers in December last year.”
RNRL had moved the Bombay High Court on Wednesday and requested it to give directions to RIL on implementation of the gas supply deal.