Reliance Industries, Jio raise $2 billion forex loan days after $3 billion financing

Reliance Industries and its unit Reliance Jio Infocomm have reportedly raised $2 billion add-on foreign currency facility, days after it signed a $3 billion financing. The $3 billion financing closed on March 31, and the $2 billion followed days after. 

The fundraising is the largest one through syndicated term loans by an Indian corporate house in at least five years. The primary syndication of $3 billion involved around 55 lenders including global giants such as Bank of America, HSBC, Citi. The new loan of $2 billion has the same terms as the previous loan with 55 lenders. 

Eighteen banks of the $3 billion loan are expected to form the syndicate for the $2 billion add-on, split equally for Reliance and Jio. It is likely to be wrapped up by the end of the month. The size of the add-on is rather unusual in Asian loan markets for an unplanned greenshoe option. 

The company has not been active in the syndicated loan market in recent years, and saw an overwhelming response following its decision to raise $2 billion. A third – $927 million – of the allocations went to 19 Taiwanese banks, while eight Japanese lenders took $276.36 million. 

The $3 billion borrowing is also split equally for Reliance and Jio. It was RIL’s largest syndicated loan. ANZ, Bank of America, BNP Paribas, Credit Agricole CIB, Citigroup, DBS Bank, First Abu Dhabi Bank, HSBC, Scotiabank, Standard Chartered Bank, State Bank of India and United Overseas Bank were the senior MLABs on the US dollar tranches for both borrowers. MLAB refers to Mandated Lead Arranger and Book Runner.

Reliance’s last syndicated offshore borrowing was a $1.45 billion dual-currency financing that was completed in 2020. 

(With PTI inputs)

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