• Commodity Finance
• Deal intelligence
• Emerging Markets
• Export credit agencies
• Export Finance
• Forfaiting
• IFA World
• Legal Issues
• Insurance & risk management
• Multilaterals
• Recruitment
• Supply chain
• Structured trade finance
• Trade technology

• News
• E-newsletter

News

posted 20 Oct 2008

Deal news

US Exim provides $400m loan guarantee to Reliance

The Export-Import Bank of the United States (US Exim) has approved a $400m long-term loan guarantee to support US exports of equipment and services to India’s Reliance Industries. The deal will enable the exporters to support Reliance Industries’ offshore oil and gas exploration and production activities in the Krishna Godavari basin in the Bay of Bengal.

The company needs to purchase engineering services, oil-field equipment, offshore platform support, and drill and well services. A small portion of the guarantee will also help to finance the construction of the $6bn Jamnagar oil refinery and petro-complex, which was started in 2007 and which will be the sixth largest oil refinery in the world when it is completed.

Bechtel, J. Ray McDermott and Canyon Offshore will be among the principal US exporters to benefit from the US Exim Bank guarantee. “Our support helped to make their exports competitive in the face of significant international competition backed by foreign export-credit agencies,” said US Exim Chairman and President James H. Lambright.

Indeed, US Exim has enjoyed a relationship with Reliance dating back to the early 1980s, before India started to open itself up to foreign investment.

Reliance Industries is India’s largest private-sector conglomerate with annual revenues of $35.9bn in fiscal 2008 and interests in retail, telecommunications, textiles and chemicals, as well as oil and gas.