Reliance Industries gets $400 mn US loan

August 29th, 2008 - 8:36 pm ICT by IANS  

New Delhi, Aug 29 (IANS) The US Export-Import Bank (Ex-Im Bank) has approved a long-term loan guarantee of $400 million to Reliance Industries Ltd to source its equipment and services from the US for its hydrocarbon exploration and production service in the Krishna-Godavari Basin, it said Friday.A statement issued by the Washington-based Ex-Im Bank, the US official export-credit agency, said RIL will use the loan for its purchases of American engineering services, oilfield equipment, offshore platform support, and drill and well services.

A share of the loan will also be used for the ongoing construction work at the Jamnagar refinery.

The primary US exporters include Bechtel Corp, J. Ray McDermott Inc. and Canyon Offshore Inc.

According to the release, India has been identified as a key market for export financing.

The Ex-Im established the Indian Infrastructure Facility to support US exports to Indian projects in April in various sectors from power, energy to healthcare.

The facility now includes nine Indian financial institutions and has a financing capacity of $2.45 billion.

“India is a market with enormous prospects, and Ex-Im Bank is pleased to support this large energy-development transaction on behalf of American exporters. Our support helped to make their exports competitive in the face of significant international competition backed by foreign export-credit agencies,” said Ex-Im Bank chairman and president James H. Lambright in the press statement.

Last year, Ex-Im bank had approved $12.6 billion in financing worldwide to support American exports, out of which $1.4 billion was towards India. It included $500 million loan guarantee to Reliance Petroleum Ltd for the Jamnagar refinery.

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