Exim Bank approves loan guarantee to RIL

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New Delhi, August 29:: Exim Bank of US has approved a USD 400-million loan guarantee to Reliance Industries to import equipment and services for oil and gas exploration and production work in the Krishna Godavari basin.

"RIL will use Export-Import Bank's guaranteed financing for its purchase of US engineering services, oil field equipment, offshore platform support and drill and well services," the bank said in a press release.

The company is investing over USD 4.3 billion in phase-I to bring to production oil and gas it found in deep-sea off the Andhra coast.

The bank said a small portion of the financing would also be used to support work at the under-construction export-oriented refinery at Jamnagar in Gujarat. The 580,000 barrels per day unit had received support from the bank last year.

"Primary US exporters for this transaction... include Bechtel Corp, J Ray McDermott Inc and Canyon Offshore Inc among others," it said.

EXIM Bank has identified India as a key market for its export financing. In April this year, it established the Indian Infrastructure Facility to support US exports to Indian projects in sectors such as power, oil and gas, airport and seaport developmnet, railway and urban transit.

The facility now includes nine Indian financial institutions and has a financing capacity of USD 2.45 billion.