Mukesh Ambani’s Reliance made a deal of 3 billion dollars
Business Business: Reliance Industries Limited (RIL) has raised $3 billion from a consortium of 11 banks. This is Reliance’s largest loan in the last two years. According to a report by the Economic Times, the agreement for this 5-year loan was finalized last month. It is based on an interest rate that is 120 basis points higher than the three-month Secured Overnight Funding Rate (SOFR). It raised $450 million in Japanese Yen. Let us tell you that the three-month SOFR rate in December was around 4.80 percent. Apart from this, the interest rate on the loan is around 6 percent at 120 basis points. The $3 billion loan is mainly to refinance the existing debt maturing in 2025.
A source said in the report that the company has already repaid $700 million in debt and plans to raise additional funds in the current quarter if needed. More banks are expected to join the syndication this quarter, the report said.
Mukesh Ambani’s Reliance has the largest stake in the $3 billion deal loan from Bank of America – $343 million. Apart from this, it includes DBS Bank and HSBC ($300 million each), Japanese MUFG ($280 million) and State Bank of India ($275 million). Japanese lender Standard Chartered, Mizuho Bank and SMBC each have a loan of $250 million.
In the last five years, Reliance Industries Limited has spent about $13 billion on acquisitions in renewable energy, telecom, retail and media. Morgan Stanley has recently published this information in a report. These acquisition plans of Reliance Industries were aimed at shifting focus from oil and petrochemical business to renewable energy and consumer-facing sectors.
