RIL hires banks to arrange $1.5 bn loan

Mumbai: Reliance Industries Ltd (RIL), owner of the world’s largest oil-refining complex, hired banks to help arrange $1.5 billion of loans, according to three people familiar with the matter.

The facility will be split into a $1 billion, five-year part and a $500 million, six-year portion, the people said, asking not to be identified because the details are private. The loan is expected to be marketed to a wider group of banks in syndication in early July, the people said.

Mumbai-based RIL is spending $8 billion to increase its petrochemical capacity, betting Indian demand for materials used to make plastics and polyester will help counter weaker global fuel sales. That’s part of an $18 billion investment plan aimed at doubling operating profit over the next five years as outlined by chairman Mukesh Ambani at the firm’s shareholder meeting in Mumbai earlier this month. Tushar Pania, a Mumbai-based company spokesman, wasn’t available to comment on the financing when called at his office on Friday.

The lenders hired for the $1.5 billion facility include Australia and New Zealand Banking Group Ltd, Bank of America Corp., Barclays Plc, Bank of Tokyo-Mitsubishi UFJ Ltd, HSBC Holdings Plc, Mizuho Corporate Bank Ltd, Royal Bank of Scotland Group Plc, Sumitomo Mitsui Banking Corp., Westpac Banking Corp., Bank of Nova Scotia, Credit Agricole SA, DBS Bank Ltd, DNB ASA, Standard Chartered Plc, National Australia Bank Ltd and State Bank of India, the people said on Friday.

feedback@livemint.com