Mukesh Ambani-controlled Reliance Petroleum Ltd (RPL) will raise $1.5 billion dollars (nearly Rs 6,900 crore) 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 (RIL).
"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 in New Delhi.
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 an initial public offer for the same project in April this year.
The Rs 27,000-crore 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.
After 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.
{{/usCountry}}After 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.
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