India’s Reliance nets $625m US Exim Bank loan as part of $5b deal

Anil Ambani firm Reliance Power is likely to get a loan of USD625 million (Rs 2,800 crore) from US Exim Bank to fund its upcoming 2,400-MW gas-based power project in Samalkot, Andhra Pradesh.

Confirming this, Fred P Hoghberg, chairman and president, US Exim Bank, told the Times of India: "The US Exim Bank is close to disbursing a loan of USD625 million for Reliance Power plant in Samalkot. The approval should come in 4 to 6 weeks. We have already funded Reliance Power's coal-based power project in Sasan and its mining venture."

The loan is a part of the USD5-billion deal signed with Reliance Power for the purchase of US-manufactured equipment for power projects. It is meant to support Reliance Power's order for USD750-million equipment contract with General Electric for the 2,400-MW Samalkot expansion.

Reliance Power has also signed another USD12-billion deal with the Chinese Exim Bank to fund various power projects using equipment sourced from China bring the total of the two deals to USD17 billion from the two entities.

India currently ranks first among Asian nations in the US Exim Bank's authorizations with the bank holding a total exposure of USD5.6 billion in various infrastructure projects.