RIL plans to raise $2 billion foreign debt for funding capex of Jio and petroleum business

Reliance Industries Limited (RIL) is reportedly planning to raise around $2 billion through overseas syndicated loans for funding its routine capital expenditure in telecommunications and petroleum businesses.

In this regard, RIL is in talks with various banks including Barclays, Citigroup, JP Morgan, Morgan Stanley and MUFG. Further, the company plans to launch the formal process to raise funds by February 2020.

As per industry sources, the tenure of offshore loans is expected to be of five-years and it would be priced after adding a spread or markup over the London InterBank Offered Rate (LIBOR).

In June 2019, RIL had raised $1.85 billion of long-term foreign loans also to fund capital expenditure.