RELIANCE INDUSTRIES HIRES 18 BANKS FOR $1.09 BN LOAN

Reliance Industries hired 18 banks for a five-year term loan of $1.09 billion to be used for refinancing debt, according to a person familiar with the matter.

RIL, controlled by billionaire Mukesh Ambani, plans to replace debt maturing in about two years that has higher interest costs, another person familiar with the matter said last month.

Reliance borrowed $1 billion in December and paid a margin of 195 basis points more than the London interbank offered rate, according to data compiled by Bloomberg. The facility being organised by banks currently will pay a margin of about 150 basis points, one of the people said on Friday, asking not to be identified as the details are private.

Reliance, country's fourth-most indebted company, has the equivalent of $10.2 billion of loans maturing before the end of 2017, Bloomberg data show. The petrochemical and textiles maker is seeking to expand in the financial services business as demand increases in the world's second-fastest growing major economy.

The banks hired include Australia & New Zealand Banking Group Ltd, Bank of America Corp, Bank of Nova Scotia, Bank of Tokyo-Mitsubishi UFJ Ltd, Banco Bilbao Vizcaya Argentaria SA, Barclays Plc, BNP Paribas SA, Citigroup Inc, Credit Agricole CIB, DBS Group Holdings Ltd, DnB NOR ASA, HSBC Holdings Plc, Intesa Sanpaolo SpA, Mizuho Financial Group Inc, Royal Bank of Scotland Group Plc, Standard Chartered Plc, State Bank of India and Sumitomo Mitsui Banking Corp, one of the people said.

SOURCE: http://articles.economictimes.indiatimes.com/2011-06-18/news/29674229_1_bn-loan-royal-bank-bank-of-nova-scotia