Reliance Industries Ltd (RIL) and Reliance Jio are in talks with lenders to raise up to $1.5 and $2.5 billion respectively in foreign loans, The Economic Times reported on October 10 citing people familiar with the matter.
RIL is looking to raise the funds to support its capital expenditure plan and is in talks with a group of lenders including Barclays, HSBC, and MUFG Bank, the report said.
The loans are expected to be priced 130-150 basis points above the Secured Overnight Financing Rate (SOFR).
RIL’s telecom arm Reliance Jio is in talks with Bank of America, BNP, HSBC, and Societe Generale to fund 5G network gear purchases from Sweden’s Ericsson and Finland’s Nokia.
The foreign loan is likely to be priced 65 basis points over the SOFR.
In July, the Reserve Bank of India increased the external commercial borrowing limit under the automatic route from $750 million or its equivalent per financial year to $1.5 billion.
