(sacbee) -- Continuing its efforts to support American jobs by boosting American exports, the board of the Export-Import Bank of the United States (Ex-Im Bank) has voted to extend a USD1.06 billion direct loan and to guarantee a USD1.06 billion JPMorgan Chase loan to Reliance Industries Ltd. (Reliance) of Mumbai, India, for the export of American goods and services destined for use in Reliance's expansion projects at Jamnagar in the Indian state of Gujarat.
The transaction is the single largest Ex-Im Bank has ever authorized for Reliance, and it represents Reliance's first attempt at funding through the capital markets with an Ex-Im Bank guaranteed bond issuance.
The credit will support approximately 12,300 U.S. jobs, according to bank estimates derived from Departments of Commerce and Labor data and methodology. Moreover, 6% of the financing is expected to support American small businesses.
Among the more than 65 exporters and suppliers involved in the transaction are Fluor Corporation, Lummus Technology, Univation Technologies LLC, Bechtel, and ConocoPhillips.
Located on the Gulf of Kutch, the Jamnagar complex oversees the largest single-location refinery operation in the world. Reliance intends to increase the complex's petrochemical output by constructing a petcoke gasification unit that will top the world's rosters in size and significantly enhance the efficiency of the company's refinery business. Reliance also plans to erect a refinery off- gas cracker with matching downstream units that will better integrate polymer and polyester production.
Reliance is India's largest private sector company, and its operations range from oil and gas exploration and production to refining and petrochemicals. The company ranked 99th in revenues and 130th in profits in 2012, according to Fortune's Global 500 list of 'World's Largest Corporations' and 'World's Top 100 companies.'
As of the end of FY 2012, Ex-Im Bank credit exposure in India totaled USD6.5 billion.
MRC