Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Reliance Offers Up to 190 Basis-Point All-in for Dollar Loan

Aug. 21 (Bloomberg) -- Reliance Industries Ltd., operator of the world’s biggest oil refinery complex, is offering an all-in rate of as much as 190 basis points for a U.S. dollar-denominated loan, two people familiar with the matter said.

The company plans to pay the interest and fees on a $500 million five-year portion of the borrowing, and an all-in rate of 175 basis points more than the London interbank offered rate on a $1.2 billion 6 1/2-year tranche, the people said, asking not to be identified because the details are private. The latter will be used to refinance debt, the people said.

Reliance Industries’ billionaire Chairman Mukesh Ambani told shareholders in June that he plans to spend 1.5 trillion rupees ($24 billion) over the next three years to expand businesses ranging from gas to telecommunications. The company has the equivalent of about $20.1 billion in bonds and loans outstanding, according to data compiled by Bloomberg.

Tushar Pania, a Mumbai-based spokesman for Reliance, couldn’t immediately be reached to comment on the company’s financing plans.

Some 18 banks will be involved in the $1.7 billion financing, the people said today. Some of the proceeds will also be used for capital expenditure, they said.

The $1.2 billion facility may be drawn in U.S. and Singapore dollars, euros and Japanese yen, and proceeds will help to refinance $1.2 billion of multicurrency loans signed in 2008, two people said July 31.

Some of the debt the company is seeking to refinance is paying an interest margin of 130 basis points more than Libor, Bloomberg-compiled data show.

Reliance Industries shares fell 0.9 percent to 818.15 rupees as of 1:06 p.m. in Mumbai.

To contact the reporters on this story: George Smith Alexander in Mumbai at galexander11@bloomberg.net; Divya Patil in Mumbai at dpatil7@bloomberg.net

To contact the editor responsible for this story: Philip Lagerkranser at lagerkranser@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.