Reliance Sibur Elastomer Pvt. Ltd., a joint venture between India’s Reliance Industries Limited (RIL) and Russian gas processing and petrochemical company Sibur, is taking a US$3.3 billion term loan as capex financing for its butyl rubber manufacturing plant in Jamnagar, Gujarat in India.
According to RIL, the 10-year loan,which was secured by way of external commercial borrowings (ECBs), will be used to partly finance the capital expenditure that will be used to set up India’s first butyl rubber manufacturing facility at Jamnagar, Gujarat.
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.
The project is one of the longest tenor in US dollar loans in Asia to date, excluding Japan, since RIL’s 10-year US$2 billion corporate loan in 2007, the company said.
RIL holds a majority 74.9% stake in Reliance Sibur Elastomerwhile Sibur owns the remaining 25.1% of the stakes.