<p>Mukesh Ambani led Reliance Industries Limited (RIL), India’ largest private sector enterprise, has been able to heave its third large scale fundraising for the company in the last nine months and will sign a $ 1.091 billion five year term loan on Thursday.</p>
<p>Despite volatile conditions making a vortex in the market, RIL has been successful in gathering funds by roping in 31 banks, including two newcomers and five re-joiners. At present the loan market faces an anarchy caused by increased funding costs and liquidity issues, as given of which many syndicate facilities have tightened policies on lending limits. Nevertheless, given Reliance’s long standing banking relationships, it has been able to successfully garner a loan to facilitate its future functions. Given the scale of operations and the borrower, a successful transaction could be facilitated.</p>
<p>Boey Yin Chong, Managing Director for syndicated finance for the institutional banking group at DBS Bank in Singapore quoted, “RIL is a responsible borrower who focuses on relationship building. They work hard to make banks more comfortable with the credit and the overall relationship with ancillary businesses, hence the typically successful response from the bank market.”</p>
<p>This is Reliance’s third loan sanction in a short span of nine months. According to industry sources, to be able to seal three consecutive deals in just nine months is an incredible feat given the present volatile market conditions. “This latest transaction reflects the quality of the credit and there are no issues in finding lenders looking to participate,” noted Bank of America Merrill Lynch’s director of loan syndications, Ashish Sharma.</p>
<p>Earlier this January, RIL guaranteed a $ 1.5 billion two-tranche term loan for Infotel Broadband Services Pvt. Ltd., facilitated by a 17-bank MLA group and nine additional banks in general syndication. Previous year in August, RIL was able to raise a $ 1 billion two-tranche term loan with a five and seven-year tranche facilitated by a 14-bank MLA group and added another 17 banks in general syndication.</p>