Reliance Industries Ltd.

Reliance Industries (RIL) has signed a $2 billion equivalent loan with nine banks covered by Euler Hermes Deutschland AG (Euler Hermes) on May 07, 2012 at Berlin, Germany. The loan will be primarily used to finance goods and services procured from German suppliers as part of RIL's petrochemicals expansion projects at Jamnagar, Hazira, Silvassa and Dahej in India.

This facility is significant on various counts as it is among the largest underwriting by Euler Hermes in recent years and Euler Hermes has for the first time accorded ‘Better than Sovereign’ rating to a corporate.

Further, despite the challenging financial markets, the deal witnessed 50% over subscription. The facility has a door-to-door maturity of 13 years and this deal will help diversify RIL's funding sources and extends the maturity profile of its long term debt in a cost effective manner.