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Big Deal: Mukesh Ambani led Reliance Industries is going to take a loan of three billion dollars from 11 big banks of the world. Reliance Industries will take this loan in two currencies, dollar and yen. This loan deal for five years was finalized last month on the basis of three-month secured financing overnight rate above 120 basis points. Of these, a loan of 450 million dollars has been decided to be given in Japanese currency Yen. According to a report by Economic Times, this is the biggest loan deal of Reliance Industries in the last two years. This country’s largest corporation in terms of income has sealed a deal with a consortium of 11 banks for this five-year loan.
Preparations are being made to repay the loan installment of 2025
Reliance, a giant from oil to telecommunication sector, is also preparing to repay a part of this loan in 2025. Reliance has already utilized $700 million in funds and is going to take more funds as per requirement in the next quarter. According to the Economic Times report, the SOFR of the loan was around 4.8 percent till mid-December. After adding 120 points to this, the loan available in dollars will be at the rate of six percent. The rate of loan available in yen will be 75 basis points above the Japanese benchmark three-month Tokyo Interbank Offer Rate. This loan deal was finalized last month.
Loan taken to increase financial flexibility
Reliance has taken this loan to increase its financial flexibility. To meet the loan needs of Reliance, one of the companies with the strongest reputation in India and to increase the risk capacity, along with 11 banks, some other banks can also join the loan giving consortium.
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