The Hindu Business Line : Reliance Petro $1.5-b loan syndication begins

Reliance Petroleum Ltd (RPL) has said that syndication for the $1.5-billion (Rs 6,700-crore) that it is raising through international loans commences on August 11.

The syndication for the facility is expected to close in early October.

Jamnagar unit

This is the first tranche of debt for the company's 5,80,000 barrels-per-day refinery and 0.9 tonnes-per-annum polypropylene plant unit coming up in Jamnagar.

The $6-billion (Rs 27,000 crore) project has a debt component of $3.5 billion.

The remaining debt of $2 billion will be raised in the international markets later, said a company spokesperson.

The current syndicated term loan facility consists of a 7.5-year tranche of $950 million and a 10-year tranche of $550 million, according to company statement.

The loan will be raised in multiple currencies but will be predominantly a dollar-denominated loan, the spokesperson said.

The interest rate will be determined at the time the funds are locked in, he added.

RPL has mandated a group of lead arrangers who will invite banks around the globe to participate in the fund raising, the statement said.

After due diligence, each of the 14 original mandated lead arrangers has obtained the necessary approvals for the facility. The loan facility has been fully underwritten by each of them.

In April RPL had raised $600 million (Rs 2,700 crore) through an IPO of 10 per cent equity stake.

The company also sold five per cent stake to Chevron Corp, raising $300 million (Rs 1,350 crore).

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