Reliance Industries, India’s largest company by revenue and market capitalization, is expected to attract at least 10 more banks from around the world to join the syndication of its $3 billion dual currency loan. The initial 11 banks that committed to the loan in December included major international lenders such as Bank of America, DBS Bank, and HSBC. The new banks that are expected to join the syndication include Australian and New Zealand Banking Group, Bank of Taiwan, Mega International Commercial Bank, and CTBC Bank from Taiwan, Barclays, Deutsche Bank, Intesa Sanpaolo from Italy, KFW Ipex Bank from Germany, and Korea Development Bank from the Asian Fareast, and JP Morgan from the US.
The syndication process is expected to begin next week, with road shows to be held to attract more lenders. The lead banks have already identified the participating banks and are working to ensure a successful syndication. The new lenders will make commitments based on their appetite and risk assessment, with the lead lenders willing to give up some of their exposure to make room for the new participants.
The loan was priced at 120 basis points over the three-month secured overnight financing rate (SOFR) and includes a $450 million component denominated in Japanese yen. The funds are expected to be used to repay debts coming due later this year. The syndication is seen as a testament to Reliance Industries’ strong credit profile and its ability to attract international lenders. The company’s largest corporate borrower in India, it has a diverse portfolio of businesses and a strong track record of financial performance.