UPDATE 1-Reliance Industries to price $1 bln 5-yr loan-source

Tag : reliance industries
India's Reliance Industries(RELI.BO: Quote , Profile , Research ) is looking to price a $1 billion five-year term loan at around150 basis points over LIBOR, a source familiar with the details ofthe plan said on Friday.
The loan is intended for general corporate purposes, the sourceadded, declining to be identified because he was not authorised totalk to the media about the transaction.
India's most valuable firm will start a roadshow for the loan nextweek, with stops in Asia and the Middle East, the source also said.
Offshore loan volumes in the first half slumped 23 percent to $9billion from the same period in 2007, according to data fromReuters Loan Pricing Corp, as lenders are becoming more selectiveabout funding in a trend seen worldwide.
But overall syndicated loan volumes in India remain strong, havingsurged 57.1 percent to $21.4 billion so far this year compared tothe 2007 period, according to Thomson Reuters data.
Despite slowing domestic economic growth, Indian companies continueto expand, including via aggressive takeover acquisitions abroad.
Tata Motors (TAMO.BO: Quote , Profile , Research ), for example, obtained this year a $3 billion one-year bridgingloan to support its acquisition of the Jaguar and Land Roverbrands, in a deal that was arranged by a group of global lendersincluding Citigroup and Standard Chartered.
Reliance Industries has been making headlines this week as itremains locked in a dispute with Reliance Communications (RLCM.BO: Quote , Profile , Research ) that is delaying the Indian mobile carrier's intended tie-up withSouth Africa's MTN Group (MTNJ.J: Quote , Profile , Research ).