Mukesh Ambani-led Reliance Industries Limited (RIL) has set a new milestone by securing a massive loan from Japan. This success comes closely after the international credit rating agency, S&P Global Ratings, upgraded the company’s credit rating to ‘A-‘. Reliance Industries has secured a loan of approximately 125 billion Yen (around 830 million US Dollars or over ₹7,000 crore) from Japanese banks.
Discussions regarding this loan had been underway for the past several months. As soon as S&P upgraded Reliance’s foreign currency rating from ‘BBB+’ to ‘A-‘, the institution’s credibility significantly increased in the global market. Due to this upgraded rating, Japanese investors and banks agreed to provide this massive loan amount to Reliance at a very low interest rate.
Several leading financial institutions and banks in Japan participated in this loan process. Among them, MUFG Bank, Mizuho Bank, and Sumitomo Mitsui Banking Corporation (SMBC) are prominent.
Reliance will utilize the funds obtained to expand its ongoing major projects, repay older debts, and meet capital expenditure requirements. Specifically, this capital is likely to be utilized for development in the company’s green energy, retail business, and telecom sectors.