EDC lends US$100 million to Indian petrochemical giant

Export Development Canada, a Crown corporation that acts as an export credit agency, has announced its US$100 million participation in a 10-year, US$2 billion syndicated loan for petrochemical company Reliance Industries Limited (RIL) of India.

The funds will go towards a gas exploration and development project on the east coast of India, with projected capital expenditure of US$5.2 billion. Calgary-based Niko Resources holds a 10 per cent stake in the project.

“EDC’S business in India continues to expand as Canadian exporters find meaningful ways to grow their business in this opportunity rich market,” said EDC president and CEO Eric Siegel in a press release.

“While a number of Canadian companies already have dealings with Reliance, EDC is pleased to have entered into this facility to help develop Canadian relationships with one of Indias most important companies.”

EDC opened permanent representation in New Delhi in 2004, and currently facilitates approximately 48 per cent of Canada’s merchandise trade with India. The corporation is also planning on opening a second Indian representation in Mumbai by the end of 2007.

Headquartered in Mumbai, India, RIL also produces polyethylene (PE), polypropylene (PP), and polyvinyl chloride (PVC). According to the company’s website, RIL is Asia’s largest manufacturer of PP, with a combined capacity of over 1 million tons.

Earlier this year, RIL was rumoured to be one of the potential partners for a joint venture with Midland, Mich.-based Dow Chemical Company.