Ex-Im Extends its Support to RIL, Offers $2.1bn loan
Filed Under: Business | Posted: 12/06/2012 at 3:00AM
Comments | Region: India
The Export Import Bank (Ex-Im Bank) of the United States has guaranteed a loan amount of $2.1 billion to RIL( Reliance Industries Limited) predominantly for its megaproject complex in Jamnagar, sponsoring for the necessary products and services that will sourced from America. This has been the largest amount ever granted to the conglomerate in the international market.
AlokAgarwal, RIL’s Chief Financial Officer stated that they are once again collaborating with leading US suppliers for avant-garde technology, crucial project management services and equipments from a number of American exporters setting the ground for their next phase of growth. This also marks RIL’s first attempt at funding via the capital markets, authenticated by Ex- Im Bank Guaranteed insurance.
The bank stated that Reliance intends to surge its output at the RIL’s Jamnagar complex, world’s largest refinery in a single location by building apetcoke gasification unit. This will make it the biggest roster in the world in terms of its size and enable it to leverage its refinery business in an effective way. Other than the petcoke gasification unit, the company also considers assimilation of its polyester and polymer production by setting up a refinery off gas cracker with complementing downstream units.The conglomerate is known to ride on this project for doubling its revenue by 2017.
Ex-Im Bank is an independent federal agency that also works towards creating and maintaining jobs by comprehending the needs of the private export financing, without burdening the American taxpayers. Fred P. Hochberg, Chairman, and President of Ex-Im Bank mentioned that this credit support would pave way for many job opportunities and benefit US exporters. The Departments of Commerce and Labor Data and Methodology believe that this credit will facilitate around 12,300 jobs in the USA.
The transaction involves more than 65 exporters and suppliers including key players like Flour Corporation, Lummus Technology, and ConocoPhillips.
MukeshAmbani’sRIL is India’s largest private sector company, also known as the energy giant, caters to a number of activities including oil and gas exploration, production and refining petrochemicals.