US Ex-Im Bank extends $2.1 bn credit to RIL

Dec 06 2012, 02:21 IST
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SummaryThe Export-Import Bank of the US has voted to extend the single largest financing transaction of $2.1 billion to Reliance Industries Limited

The Export-Import Bank of the US has voted to extend the single largest financing transaction of $2.1 billion to Reliance Industries Limited (RIL) for the export of American goods and services destined for use in RIL’s expansion projects at Jamnagar in Gujarat. This includes a $1.06 billion direct loan and to guarantee a $1.06 billion JPMorgan Chase loan to the company.

The transaction represents Reliance’s first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance.

The credit will support approximately 12,300 US jobs, according to bank estimates derived from Departments of Commerce and

Labor data and methodology. Moreover, 6 per cent of the financing is expected to support American small businesses.

“This transaction is a tremendous opportunity for US exporters and US jobs, as revealed by the impressive exporter and job counts,” said Ex-Im Bank Chairman and President Fred P Hochberg.

“We are very pleased to support Reliance in this important expansion project,” added Lillian Labbat, managing director, JP Morgan.

Using US goods

* The transaction includes a $1.06 billion direct loan and to guarantee a $1.06 billion JPMorgan Chase loan to the firm

* It represents Reliance’s first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance

* The credit will support approximately 12,300 US jobs, according to bank estimates

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