Reliance Industries targets $1.5 bn overseas loans

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Reliance Industries targets $1.5 bn overseas loans
Reliance Industries Ltd (RIL), India's largest company by market value, is in talks with banks to arrange as much as $1.5 billion in dollar-denominated loans, according to two people familiar with the matter.

Reliance, controlled by billionaire Mukesh Ambani , plans to borrow $1.1 billion in five-year loans to replace debt maturing in about two years that has higher interest costs, the people said, not wishing to be identified because the terms aren't set.

The company may obtain another $400 million of new loans, the people said. Reliance, India's fourth-most indebted company, is looking to borrow at about 165 basis points more than the six-month London interbank offered rate, or Libor, the people said. 

Reliance Industries Ltd (RIL) is holding discussions with banks in order to borrow about $1.5 billion in dollar-denominated loans.

In order to replace debt maturing in 2 years that has higher interest costs, the company is planning to borrow $1.1 billion in 5-year loans.

Moreover, Reliance might arrange another $400 million of new loans.

Reliance is planning to borrow from the banks at about 165 basis points higher than the 6-month London interbank offered rate, or Libor.

Reliance Industries Limited (RIL) is the largest private sector conglomerate company headquartered at Mumbai, India.

The company is largest by annual turnover of US$58.5 billion and market capitalization of US$78.2 billion for the fiscal year ending in March 2011 making it one of the largest India's private sector companies.

Read more about: ril, oil and gas, bse, nse
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