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Export Credit Line for Reliance Industries Limited in India
Supporting Export of Facilities Related to Oil Refining and Petrochemical Plants by Japanese Companies

  • Region: Asia
  • Machinery and Equipment
  • Mid-tier Enterprises and Small and Medium-Sized Enterprises(SMEs)
  • Export Loans

April 23, 2014
  1. The Japan Bank for International Cooperation (JBIC; Governor: Hiroshi Watanabe) signed today a loan agreement totaling up to USD 330 million (JBIC portion) to set up an export credit line ("Credit Line")*1 with Reliance Industries Limited (RIL) in India. This is the first time for JBIC to extend loan to RIL. The Credit Line is cofinanced up to USD 220 million with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (lead arranger), Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd., The Gunma Bank, Ltd., The Hachijuni Bank, Ltd. and The Chiba Bank, Ltd.. The overall cofinancing amount adds up to USD 550 million. Nippon Export and Investment Insurance (NEXI) provides Insurance for the portion cofinanced by private financial institutions.
     
  2. Among the oil refining and petrochemical plants operated and maintained by RIL, this project intends to expand the production capacities of the following plants: a petcoke gasification plant, a paraxylene plant and an ethylene production plant including downstream units (all in Jamnagar, State of Gujarat), purified terephthalic acid (PTA) production plant (Dahej, State of Gujarat), synthetic rubber production plant (PBR/SBR) (Hazira, State of Gujarat), and polyester filament yarn production plant (Silvassa, Union Territory of Dadra and Nagar Haveli). This Credit Line will finance RIL for procurement of goods and services related to these oil refining and petrochemical plants from multiple Japanese companies in expanding their capacities.
     
  3. In India, which has a population of about 1,250 million, further growth in the petrochemical sector is foreseen, backed by its vigorous domestic demand. In these projects, financial support provided by JBIC and Japanese cofinancing private financial institutions, including local banks, for the export of facilities related to the oil refining and petrochemical plants will help create business opportunities for Japanese companies, including mid-tier enterprises and small and medium-sized enterprises (SMEs), in India's petrochemical sector, and smoothly implement long-term financing projects in developing countries by Japanese local banks. Thereby, it will contribute to maintaining and improving the international competitiveness of Japanese companies.
     
  4. As Japan's policy-based financial institution, JBIC will continue to support the export of machinery and equipment to India by Japanese companies, including mid-tier enterprises and SMEs, by drawing on its various financial facilities and schemes for structuring projects, and performing its risk-assuming function.
     
Note
  1. *1  An export credit line is a form of export loan in which JBIC makes a commitment of the maximum amount of credit to be extended to foreign banks or other entities to finance the export of goods and services from Japan.

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