The Hindu Business Line : Reliance raises $250 m from overseas loans

RELIANCE Industries Ltd has raised $250 million (approximately Rs 1,131.25 crore) through an international syndicated loan in order to pay off its high cost debt, as part of its programme to optimise its cost of capital.

The tenor of the loan is for five years and the company will pay 90 basis points over the London Interbank Offer Rate (LIBOR), according to banking sources. The six-month Libor rate for dollar loans is around 1.20 per cent, according to dealers. The arrangers of the loan include, ANZ Grindlays, Bank of America, Credit Lyonnais, DBS, HSBC, Mizuho, etc. "This record pricing has surpassed the price RIL itself obtained in 1995-96 when it had first accessed the syndicated loan market which had split ratings," said a dealer.

RIL's deal is the first after the liberalisation of ECB guidelines and the Moody's upgrade of India's investment grade, dealers said.

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