EXIM Bank approves $2.1 bn assistance to Reliance
Washington: The Export-Import Bank of the United States (Ex-Im Bank) on Tuesday voted to provide USD 2.1 billion worth of direct loan and loan guarantee to Reliance, which it said would help increase US export to India.
The transaction is the single largest Ex-Im Bank has ever authorised for Reliance and it includes extending a USD 1.06 billion direct loan and similar amount to guarantee JPMorgan Chase loan to Reliance for export of American goods and services destined for use in Reliance's expansion projects at Jamnagar in the Indian state of Gujarat.
It also represents Reliance's first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance, an official release said.
The credit will support approximately 12,300 US jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology.
Moreover, six percent 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.
Among the more than 65 exporters and suppliers involved in the transaction are Fluor Corporation, Lummus Technology, Univation Technologies LLC, Bechtel, and ConocoPhillips.
Located on the Gulf of Kutch, the Jamnagar complex oversees the largest single-location refinery operation in the world.
Reliance intends to increase the complex's petrochemical output by constructing a petcoke gasification unit that will top the world’s rosters in size and significantly enhance the efficiency of the company’s refinery business.
Reliance also plans to erect a refinery off- gas cracker with matching downstream units that will better integrate polymer and polyester production.
"We are once again partnering with major US suppliers for cutting edge technology, critical project management services and equipment from a wide section of American exporters for rolling out our next phase of growth," said Alok Agarwal, Reliance’s chief financial officer.