The Export-Import Bank of the United States (Ex-Im Bank), on Wednesday, voted to provide $2.1-billion worth of direct loan and loan guarantee to Reliance Industries Ltd, which, it said, would help increase U.S. export to India.
The transaction is the single largest Ex-Im Bank has ever authorised for Reliance and it includes extending a $1.06 billion direct loan and similar amount to guarantee JPMorgan Chase loan to Reliance for export of American goods and services destined for use in Reliance’s expansion projects at Jamnagar in the Indian State of Gujarat.
It also represents Reliance’s first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance, an official release said.
The credit will support about 12,300 U.S. jobs, according to the bank estimates derived from the Departments of Commerce and Labour data and methodology.
Moreover, six per cent of the financing is expected to support American small businesses.
“This transaction is a tremendous opportunity for U.S. exporters and U.S. jobs, as revealed by the impressive exporter and job counts,” said Ex-Im Bank Chairman and President Fred P Hochberg.
“We are very pleased to support Reliance in this important expansion project,” added Lillian Labbat, Managing Director, JP Morgan.
Among the more than 65 exporters and suppliers involved in the transaction are Fluor Corporation, Lummus Technology, Univation Technologies LLC, Bechtel, and ConocoPhillips.