Financial Daily from THE HINDU group of publications
Tuesday, Jan 18, 2005
Financial Daily from THE HINDU group of publications Tuesday, Jan 18, 2005 |
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Corporate
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Overseas Borrowings RIL ties-up for $350 m multi-currency loan Our Bureau
Mumbai , Jan. 17 RELIANCE Industries Ltd (RIL) today said it has syndicated a five-year $ 350 million multi-currency loan. The company claims it is the first Indian company to borrow a loan with three currency options - US dollar, Japanese yen and euro. "This loan is an intelligent way to hedge risks involved with the falling dollar and fluctuating interest rates in the international market as the company has the option of repaying in different currencies," said a senior analyst at Anand Rathi Securities. The loan has been raised at 0.75 percentage point above the London Inter-bank Offered Rates. The money borrowed will be used for ongoing capital expenditure, according to the company. This is the first time that RIL has borrowed a euro loan, a news release said. The transaction is being lead arranged by ABN Amro Bank N.V., Bank of Tokyo-Mitsubishi Ltd, Calyon, DBS Bank Ltd, ING Bank N.V, and Standard Chartered Bank. Mr Alok Agarwal, RIL's President - Finance, after mandating the lead arrangers, said: " I am very happy with the commitment shown by relationship banks, and their responding with underwritten offers in such a short time. This landmark borrowing represents the finest pricing achieved by RIL for a medium-term loan (five years)."
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