09.05.2012 – 11:01
KfW IPEX-Bank: Syndicated financing of USD 2 billion for German plant engineering exports to Reliance Industries Limited in India
Frankfurt am Main (ots)
- KfW IPEX-Bank structures syndicated financing amounting to USD 2 billion - Reliance Industries Ltd. as borrower plans to expand production at four locations in India - Transaction has great relevance for German plant engineering sector: expected delivery volume of up to EUR 1.6 billion
An international consortium of banks headed by KfW IPEX-Bank is supporting Reliance Industries Limited (RIL) of India with a loan of USD 2 billion for a comprehensive expansion project. This comprises the simultaneous expansion of production at four company locations in India. The loan agreement is covered by an export credit guarantee of the Federal Republic of Germany and serves to finance substantial deliveries of modern plant engineering equipment from Germany. Negotiations with the nearly 40 exporters are already at an advanced stage and indicate an expected German delivery volume of up to EUR 1.6 billion for the Indian expansion project. "With this financing we are also supporting a number of medium-sized exporters, thereby helping secure jobs in Germany. We are pleased to be offering clients a financing arrangement with an extraordinarily large framework cover," commented Markus Scheer, member of the Management Board of KfW IPEX-Bank, upon closing the deal. The loan has a term of 13 years and is structured in equal shares of euro and US-dollars. The transaction is among the largest Hermes guarantees to have been provided in recent years. Part of the financing will receive funding through the ERP Export Financing Programme. The agreements were signed on 7 May 2012 in Berlin
RIL is India's largest private-sector enterprise. Along with oil and gas production, the Reliance Group primarily specialises in refineries and the production of petrochemical intermediate and finished products. The goods manufactured by RIL are used in plastic production, in packaging (for example PET bottles, plastic boxes) and in the production process of synthetic fibres such as polyester and other petrochemical products. The company is a world market leader in many sectors.
About KfW IPEX-Bank GmbH
Within KfW Bankengruppe KfW IPEX-Bank is in charge of international project and export finance. It is responsible for providing financing to support the German and European economy, a task derived from the legal mandate assigned to KfW Bankengruppe. Its prime focus is on medium- and long-term lending to boost the export economy, develop economic and social infrastructure and support environmental and climate protection projects. KfW IPEX-Bank operates as a legally independent group subsidiary and plays a major role in fulfilling the promotional mission of KfW Bankengruppe. It has 531 employees (as of 31 December 2011) and is represented in the key economic and financial centres throughout the globe.
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