Reliance Petroleum Ltd (RPL) has arranged to raise $1.5 billion syndicated term loan to finance its new refinery and polypropylene unit, adjacent to its existing Jamnagar refinery in Gujarat.
"The syndication will be launched today. The original mandated lead arranger group will invite banks around the globe to participate in this landmark fund raising by the borrower (RPL). General syndication is expected to be closed in early October," Reliance said in a statement Friday.
RPL had mandated a group of lead arrangers to organise the term loan facility which has now been fully underwritten by each of the 14 original mandated lead arrangers, the company statement said.
The loan facility is India's largest offshore syndicated loan financing.
"It comprises of a $950 million 7.5-year tranche and a $550 million 10-year tranche with a blended average life of 6.6 years," RPL said.
"Proceeds of the facility will be used to finance a new 580,000 barrels per day refinery and a 0.9 million tonnes per annum polypropylene unit" of a new petrochemical project being set up adjacent to RIL's existing refinery at Jamnagar, the statement said.
After a highly successful initial public offering (IPO) by Reliance Petroleum in April, this financing represents another early successful financial closure for the new project.
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