New Delhi: Reliance Sibur Elastomer Pvt Ltd, a unit of Reliance Industries, has signed an agreement to take a term loan of USD 3,330 million to finance capex of butyl rubber manufacturing facility at Jamnagar in Gujarat.
The 10-year loan by way of external commercial borrowings (ECBs) will be used “to part finance the capital expenditure to set up India’s first butyl rubber manufacturing facilities at Jamnagar, Gujarat,” RIL said in a regulatory filing.
The loan will be secured by way of charge on the movable fixed assets of Reliance Sibur Elastomer pertaining to the project. Payment obligations are guaranteed by RIL. “This facility is one of the longest tenor US dollar loan to date in Asia (ex Japan), since RIL’s 10 year corporate loan for USD 2,000 million in 2007,” it said.
Reliance Sibur Elastomer is a joint venture between RIL and Russian gas processing and petrochemical company Sibur. RIL holds a majority 74.9 per cent stake in the company while the balance 25.1 per cent is with Sibur.
