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India's Reliance raises US$250m in loans

MUMBAI - Reliance Industries Ltd (RIL) on Wednesday concluded a US$250 million international syndicated loan at 90 basis points over the London Inter-Bank Offered Rate (LIBOR).

Proceeds of the loan will be used to refinance its existing higher cost debt, banking sources said here.

This is the first such transaction concluded after the recent liberalization of external commercial borrowings guidelines by the federal finance minister and upgrade of India's sovereign rating to investment grade by Moody's.

The syndicated loan, with a maturity of 60 months, received an overwhelming response from arranger banks including ANZ, Bank of America, Credity Lyonnais, DBS and HSBC, sources said.

RIL's pricing on the syndicated loan is finer than that obtained by ICICI Bank on its international bond offering in October last year when it sold bonds aggregating US$300 million at 125 basis points over LIBOR, the sources added.

(Asia Pulse/PTI)

Feb 6, 2004

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