Reliance signs $736 million green loan to fund REC Solar acquisition
Reliance Industries NSE 1.11 % is understood to have raised $736 million through a green loan facility to finance the Mukesh Ambani-controlled firm’s acquisition of Norwegian solar panel manufacturer REC Solar Holdings in what could be the first such M&A financing from an Indian firm.
Australia and New Zealand Banking Group, DBS Bank, Credit Agricole, HSBC and MUFG were among the bankers to this rare facility, which is being used for acquisition financing for the first time.
The debt facility will have an interest margin of around 120bps–125bps over Libor. The debt facility was taken under Singapore-incorporated REC Solar, and is secured against guarantees from Reliance New Energy Solar, a wholly owned subsidiary of Reliance Industries.
