Amidst tight liquidity conditions, JP Morgan has signed a $400 million financing facility with Reliance Industries Ltd (RIL) to support the company's various investment projects in India. JP Morgan is the arranger, lender and facility agent for this transaction.
The structured finance solution created by JP Morgan with the Export-Import Bank of the United States (US Ex-Im Bank) - the official U.S. export credit agency - involves an 11-year facility providing RIL with financing of up to $400 million to support RIL's equipment purchases from a total of 17 U.S. suppliers, a statement said.
In a year marked by tumultuous market conditions, a tight liquidity environment and an increased focus on risk mitigation; this financing facility marks a significant achievement.
RIL is India's largest private sector enterprise, with businesses in the energy and petrochemicals value chain. The group's activities range from the exploration and production of oil and gas, to petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles and retail.
Over the past four months, RIL has been able to raise more than $2.5 billion, including this new facility, to support its capital expenditure programme.
Simon Jones, head of JP Morgan's Treasury Services in Asia Pacific, said: "We are pleased to have the opportunity to support Reliance's investments through this financing facility. We expect to see a rapid growth in the demand for U.S. export programmes in the near future, especially for clients seeking long-term financing solutions."
JP Morgan's Treasury Services division has done the transaction.