Mumbai: Reliance Industries on Wednesday held the first leg of a road-show in Singapore to raise USD 1.5-billion foreign loans to fund the expansion of its petrochemicals facility at Jamnagar, sources said.
"The first marketing meeting was held in Singapore today, and the second leg of the road-show will be held in Taipei on Friday (July 13)," a source familiar with the development said. Banks will have to commit their fund offerings by early August, the source added.
Sources, however, did not reveal the names of banks or their number. They also refused to share interest rate details.
They said the funds raised will be used to finance the expansion plan at its petrochemicals facility at Jamnagar. The upcoming USD 4-billion petroleum coke gasification project will produce synthetic natural gas replacing expensive LNG as fuel," said the source.
The development could not be officially confirmed as a RIL spokesperson refused to comment.
This is the third fund raising by RIL since February. It had raised USD 1.5 billion in February and USD 2 billion in May for a 13-year tenor, taking its gross debt to USD 15.4 billion or over Rs 85,000 crore.
On June 25, Moody's had said RIL's long-term fundamentals remained "intact, despite the weak macroeconomic environment."
The source further said the fund raising plan is part of the company's plan to increase profits as announced by company chairman Mukesh Ambani last month at the 37th annual general body meeting.
However, the fund raising plan is amusing, said an analyst, who wished not to be named, as the company is sitting on a cash pile of over Rs 76,000 crore as of FY12.
At the AGM last month, Ambani had unveiled a plan to double operating profits by investing Rs 1 lakh crore over the next five years across energy, retail and telecom to double operating profit.


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