Reliance Industries Limited (RIL) has mandated a group of leading international banks for a three year US$ 348 Million Syndicated Term Loan Facility. The facility intends to refinance two existing higher cost loans thereby achieving significant cost savings for the company.
The banks appointed as Mandated Lead Arrangers (MLA) for the facility are ABN AMRO Bank N.V., Bank of America N.A, The Bank of Tokyo-Mitsubishi, Ltd., Calyon, The Hongkong and Shanghai Banking Corporation Limited, ING Bank N.V. and Standard Chartered Bank These have since been joined by Mizuho Corporate Bank, Ltd, Hypo-Vereinsbank, ICICI Bank, Rabobank, RZB Austria, Societe Generale and Sumitomo Mitsui Banking Corporation.
The facility has been fully underwritten by the MLA, and has seen a successful first level of syndication wherein 7 banks have joined the original Mandated Lead Arrangers during the sub-underwriting phase. A few other banks are still processing further approvals and are likely to join the MLA group later this week. The deal has been launched into general syndication on 22nd August 2005.
Given the enthusiastic support so far at the senior level, the facility is expected to mirror the success of RIL's two recent US$ 350 million facilities in calendar year 2005.
Commenting on the transaction, Mr. Alok Agarwal, President (Finance) of RIL, said "RIL has enjoyed strong support from the international banking community over the years and this transaction underlines the confidence of RIL's relationship banks in the company. RIL's predominant position in the country should ensure that this deal, like in the past, will set a benchmark for further offerings from the company and other Indian corporates."
