Reliance is negotiating a $2 billion loan to support its expansion

16 Jun 2023 , 11:37 AM

According to news reports, Reliance Industries Ltd. is in discussions with lenders for a foreign currency loan of up to $2 billion to support the continuous growth of its oil to telecoms business.

The expansive company, run by Mukesh Ambani, intends to use India’s designated external commercial borrowing channel to get the loan, according to the reports.

According to one of the reports, the facility may have a three- to five-year maturity date. The funds will be utilized for capital expenditures and to refinance a loan that will mature in September.

According to one of the persons who talked to ET, lenders involved in the conversations include Bank of America Corp., Citigroup Inc., and Standard Chartered Plc. 

Ambani is seeking money as he works to expand his telecom and customer-facing businesses inside his company, which is based mostly on the processing of crude oil. After the company managed to reach net debt zero status in 2020, extensive borrowings have been used to fuel Reliance’s expansion drive.

In addition to last year’s $3 billion purchase of the streaming rights to the highly sought-after Indian Premier League cricket event, Reliance has stated its intention to invest $75 billion in renewable energy over the course of 15 years. The company is also deploying 5G network services across South Asia, with an estimated $25 billion cost.

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