Mumbai: Reliance Jio Infocomm Limited (RJIL) has signed syndicated term loan facilities aggregating to $1.5 billion. The facility is guaranteed by Reliance Industries Limited (RIL) and will be used to refinance the syndicated term loan facilities.
The facility was fully underwritten by an initial group of 15 core relationship banks that comprise the Mandated Lead Arrangers and Bookrunners (MLABs). The deal also witnessed significant over-subscription before it was launched into syndication and two banks joined in as MLAs.
The overall bank group saw participation from banks all over the world, including North America, Europe, Australia, Asia and the Middle East. The term loan syndication saw a total of 26 banks participate in the Facility.
The facility is significant on various counts as it comprises of $1 billion Facility I, which has a total maturity of 5.5 years and the $0.5 billion Facility II, which has a total maturity of 7 years. It represents the longest average maturity for an unsecured syndicated loan of similar size in Asia this year.
It has tied up at significantly better terms than the facilities being refinanced which were signed in 2010. The facility has seen tremendous response in syndication and raised over $400 million.
In compliance with Reserve Bank of India guidelines, the facility saw participation from only International banks. This was one of the rare occasions when the higher tenor 7-year facility saw a strong participation in syndication.
It also saw strong participation from Middle Eastern, regional Taiwanese and Japanese banks. The 15 MLABs for the Facility were Australia and New Zealand Banking Group Limited, Bank of America N.A., Barclays Bank PLC, BNP Paribas, Singapore Branch, The Bank of Nova Scotia Asia Limited, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Citigroup Global Markets Singapore Pte. Ltd., Crédit Agricole Corporate and Investment Bank, DBS Bank Ltd., The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch, Mizuho Bank, Ltd., The Royal Bank of Scotland plc, Standard Chartered Bank, Sumitomo Mitsui Banking Corporation and Westpac Banking Corporation.
The 2 MLAs which came in before syndication are National Bank of Abu Dhabi PJSC and United Overseas Bank Limited.
The banks which joined in syndication are Abu Dhabi Commercial Bank, Societe Generale SA, Sumitomo Mitsui Trust Bank, Limited, Singapore Branch, Land Bank of Taiwan, Singapore Branch, Mega International Commercial Bank Co Ltd, Offshore Banking Branch, Bank of Taiwan, Singapore Branch, CTBC Bank Co Ltd. Singapore, The Iyo Bank, Ltd. and The Hyakujushi Bank, Ltd.
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