RIL seeks $1 billion loan to fund petrochemicals, telecom expansion

NEW DELHI: Reliance Industries is seeking a loan of about $1 billion to fund its petrochemicals and telecom expansion.

RIL has approached banks for the five-year loan, sources privy to the development said.

A company spokesperson did not immediately offer any comment.

RIL has lined up a $ 12 billion expansion of its petrochemical business, the largest since completing its second oil refinery in 2008.

The company had earlier this month raised $ 2 billion as loan from German banks.

RIL is investing over $ 12 billion over next 4-5 years in the refining and petrochemical industries.

It is setting up an $ 4 billion petroleum coke gasification project that will produce synthetic natural gas that will replace expensive LNG as fuel.

Also, it is spending $ 8 billion on adding capacities of PFY, PET, polyester and intermediate chemicals such as PTA and paraxylene, besides adding new products such as carbon black and rubber.