JPMorgan has signed a USD400 million financing facility with Reliance Industries Ltd (‘RIL’) to support the company’s various investment projects in India. JPMorgan is the Arranger, Lender and Facility Agent for this transaction.
The structured finance solution created by JPMorgan with the Export-Import Bank of the United States (‘US Ex-Im Bank’) – the official US export credit agency – involves an 11-year facility providing RIL with financing of up to USD 400 million to support RIL’s equipment purchases from a total of 17 US suppliers. 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.
“We are pleased to have the opportunity to support Reliance’s investments through this financing facility,” says Simon Jones, head of JPMorgan’s Treasury Services in Asia Pacific. “We expect to see a rapid growth in the demand for US export programmes in the near future, especially for clients seeking long-term financing solutions. JPMorgan has a dedicated multi-disciplinary team supporting this type of financing facility. “This structure allows the firm to manage the US Ex-Im Bank credit guarantee process efficiently, while addressing the objectives, preferences and constraints of all parties to a transaction.”
D.C.