RIL signs 400-mn US financing facility

Reliance Industries Ltd has signed a 400 million around Rs 2,000 crore US financing facility to support the company8217;s various investment projects in India. In a year marked by tumultuous market conditions, a tight liquidity environment and an increased focus on risk mitigation, this financing facility is considered as a significant achievement, bankers said.

RIL signed the facility with JP Morgan which is the arranger, lender and facility agent for this transaction. 8220;This is the first such financing arrangement by an Indian company since the financial turmoil broke out earlier this year,8221; said a banking source. Meanwhile, Reliance Industries Ltd plans to raise up to Rs 500 crore 102 million through the sale of 3-year bonds carrying a coupon of 10.10 per cent. The issue opened on Wednesday and closes on Friday and is rated 8220;AAA8221; by Crisil and Fitch. Edelweiss Capital is the sole arranger to the issue.