Mumbai, Oct 19 (IANS) India's largest private player in the refinery business, Reliance Petroleum Limited (RPL), has concluded a $2 billion borrowing deal for its $6 billion export-oriented refinery project at Jamnagar in Gujarat.
The $2 billion syndicated loan facility is the single largest foreign currency financing in India. It is also the single largest limited resource financing mandated in the Asian market in recent years, an RPL statement said here Thursday.
RPL, a wholly owned subsidiary of Reliance Industries Ltd (RIL), has secured commitments of over $3.4 billion from over 50 international banks.
'In a well executed global syndication, RPL secured commitments of over $3.4 billion from over 50 banks across three continents. This reflects an over-subscription of 2.3 times its initial loan facility of $1.5 billion,' the statement said.
'RPL has utilised a part of the excess demand by launching an additional loan facility of $500 million, towards meeting a part of the balance debt requirements for the project,' it said.
'The facility will be used to finance the setting up of a new refinery having an installed capacity of approximately 27 million tonnes and a 0.9-million tonnes polypropylene complex,' said a RPL official here.
'The new refinery is expected to be the sixth largest at any single location in the world and together with RIL's existing 33 million tones per annum refinery at Jamnagar, this will be the largest concentration of refinery assets at a single location globally,' he added.
'I am pleased with the progress achieved by the RPL team on various fronts, including the financial closure and project implementation,' said RIL chairman Mukesh Ambani said.
'The construction activities have taken off smoothly and the project is well on its way towards timely completion. I am convinced that RPL is well positioned to capitalise on the emerging opportunities and create superior value for its shareholders,' he said.