RIL raises $573 mn loan for 6 large ethane carriers

Reliance Industries Limited (RIL) said on Tuesday it has raised a term loan of USD 573 million to finance partly a construction of six very large ships for transportation of ethane from the US. The six very large ethane carriers (VLECs) will be the largest ethane vessels ever built in the world.

The loans with a tenor of 12 years comprise of Korea Trade Insurance Corp (K-Sure) insured tranche of $ 286.5 million and a commercial tranche of $ 286.5  million.  The loans will be secured by VLECs.  These VLECs will be transporting ethane from US to Dahej in Gujarat. The same gas will be used for feeding RIL’s crackers at Dahej, Hazira and Nagothane and will ensure there is consistent supply of ethane at competitive prices.

The said VLECs will be financed in a debt-equity ratio of 80:20.  HSBC Ltd., and Standard Chartered Bank, Bank of America Leasing & Capital LLC, Australia and New Zealand Banking Group Ltd, Citibank, DBS Bank Ltd, BNP Paribas, Societe  Generale, Sumitomo Mitsui Banking Corp, The Bank of Tokyo- Mitsubishi UFJ Ltd., Credit Agricole Corporate and Investment Bank and JP Morgan Chase Bank NA are the financers to RIL.