Reliance’s new ‘shopping line’ deal covered by Euler Hermes takes petchem spree to $17bn

(Trade & Export Finance, London, 9 February 2016) Reliance Industries’ latest €950 million ($1.04 billion) export credit agency (ECA)-backed deal is expected to push its capital expenditure spree in refinery and petrochemical expansion projects to approximately $17 billion. The Mumbai-based conglomerate – with business across India engaged in energy, petrochemicals, textiles, retail and telecommunications – signed an innovative ‘shopping line’ credit facility with nine banks in December. This deal, which has an 11-year tenor and is covered by German ECA Euler Hermes, will fund the purchase of equipment primarily from German engineers Linde and MAN for Reliance’s largest existing petrochemicals plant, located in Jamnagar in the north-western province of Gujurat.