December 27, 2012
MUMBAI: When it comes to raising cheap finances globally, the Ambani brothers usually take the lead, especially at a time when India Inc is faced with a high interest rate scenario in the domestic market and difficult conditions globally.
Ambani Brothers: Mukesh and Anil
December 27, 2012
MUMBAI: When it comes to raising cheap finances globally, the Ambani brothers usually take the lead, especially at a time when India Inc is faced with a high interest rate scenario in the domestic market and difficult conditions globally.
Ambani Brothers: Mukesh and Anil
While Reliance Group chairman Anil Ambani has found Chinese banks to refinance debts and raise fresh loans for its communications and power business, his elder brother's firm Reliance Industries (RIL) is seen tapping export credit agencies across the globe — from US, Korea, France, Germany and Italy to raise $7 billion or Rs 3,8000 crore. RIL is again raising $1 billion, after securing $2.1 billion credit from US EXIM early this month to part fund its $12 billion expansion of the petrochemicals complex in Jamnagar.
RIL is in talks with Korea Trade Investment Corporation or K-Sure and French export credit agency Coface SA to raise $500 million loan guarantee from each. When asked about the fresh fund raising plans, a RIL spokesperson said, "We are in discussions with several export agencies at all times for financing our new capex projects. But, we cannot share any specific details."
RIL has also raised $1.5 billion through bond issue in February this year, taking its fresh borrowings this year to $7 billion or Rs 38,000 crore. RIL has raised funds with backing of export credit agencies, which include $2.1 billion from US EXIM, $2 billion from German credit insurer Euler Hermes Deutschland AG and $400 million from Italian export credit agency SACE.
Similarly, this year Anil Ambani's Reliance Group has drawn $1.1 billion and $1.2 billion from Chinese banks for its power and communications business as part of $10 billion deal with the Chinese lenders in lieu of procuring products and services of the Chinese firms. Reliance Group has also signed a deal with the US EXIM for $5 billion credit facility for funding its mining and power business.
Courtesy: TNN
