Mumbai: Reliance Industries is in talks with lenders for a foreign-currency loan of up to $2 billion to fuel the ongoing expansion of its oil-to-telecoms business, according to people familiar with the matter.
The sprawling firm, controlled by Asia’s richest man Mukesh Ambani, plans to use India’s dedicated external commercial borrowing route to secure the loan, the people said, asking not to be identified because the discussions are private.
The facility may have a maturity period ranging between three to five years, one of the people said, and the proceeds will be used for capital expenditure and to refinance another loan that matures in September.
Lenders involved in the discussions include Bank of America, Citigroup and Standard Chartered, one of the people said. Spokespeople for those banks declined to comment, while a representative for Reliance said they couldn’t immediately comment.
Ambani is raising funds as he continues to build out the telecoms and consumer-facing arms of an empire based on a bedrock of crude-oil refining. Reliance’s expansion spree has been fueled by generous borrowings after the firm managed to achieve net debt zero status in 2020.
Reliance has said it aims to invest $75 billion in renewable energy over 15 years and last year acquired the $3 billion streaming rights to the highly coveted Indian Premier League cricket tournament. The firm is also rolling out 5G network services across the South Asian nation, which is expected to cost $25 billion.