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Mukesh Ambani's Reliance Industries Limited (RIL), India's largest company by revenue has secured $3 billion in funding from a group of 11 banks, according to media reports. This is the company’s biggest borrowing deal in almost two years.
The five-year loan, finalized last month, is priced 120 basis points above the three-month Secured Overnight Financing Rate (SOFR) and includes $450 million in Japanese yen.
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RIL is preparing for significant loan repayments in 2025. A source mentioned that the company has already used $700 million of the loan and plans to access more funds as needed in the current quarter.
Deal with Global Banking Support
Key banking partners in the deal include Bank of America, which holds the largest share at $343 million. Other major participants are DBS Bank and HSBC, each with $300 million, followed by Japan’s MUFG with $280 million, and India’s State Bank of India contributing $275 million. Japanese lenders Standard Chartered, Mizuho Bank, and SMBC each have $250 million exposure. First Abu Dhabi Bank, Citibank, and Credit Agricole CIB have all contributed $241 million.
The loan is priced at around 6% based on the three-month SOFR rate of approximately 4.80% as of mid-December, with an additional 120 basis points. The yen-denominated part of the loan is priced 75 basis points above the Tokyo Interbank Offer Rate (TIBOR). This dual-currency loan deal, which includes both US dollars and Japanese yen, was finalized last month.
The $3 billion loan is mainly aimed at refinancing loans due in 2025. More banks are expected to join the syndication soon, helping to manage risks and increase their lending capacity to Reliance, one of India’s most creditworthy companies.
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