April 5 (Bloomberg) -- Reliance Industries Ltd., owner of the world’s largest oil refining complex, plans to borrow about $2 billion to refinance debt, according to three people familiar with the matter.
Mumbai-based Reliance, controlled by billionaire Mukesh Ambani, is in talks with banks for a five-year loan, the people said, asking not to be identified, because the terms aren’t set. Outstanding debt at the company as of Dec. 31 was 722.66 billion rupees ($13.2 billion), compared with 682.59 billion rupees a year earlier, figures on its website show.
A Reliance spokesman didn’t immediately reply to e-mailed questions seeking comment on the financing.
The company borrowed an unprecedented $5.8 billion overseas in 2012 and will spend $27 billion in five years to build petrochemical plants and drill wells, Deutsche Bank AG estimates. The company, India’s second-most indebted, has $19 billion of bonds and loans outstanding, according to data compiled by Bloomberg. The company’s cash pile stood at $13.3 billion on Dec. 31, versus $8.9 billion a year earlier, the data show.
Reliance’s shares rose 1.6 percent to 780.10 rupees in Mumbai today. The stock has declined 7.1 percent this year, compared with a 5 percent loss in the S&P BSE Sensex index.
Reliance was the biggest issuer of foreign-currency bonds from India in 2012, and also the nation’s No. 1 borrower in the dollar loan market, data compiled by Bloomberg show.