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Ex-Im Approves $2.1 Billion to Finance Export of U.S. Petrochemical Goods and Services to India

Tuesday, December 4, 2012

(Ex-Im Bank)  Washington, D.C. – 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 $1.06 billion direct loan and to guarantee a $1.06 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, six percent of the financing is expected to support American small businesses.

“This transaction is a tremendous opportunity for U.S. exporters and U.S. jobs, as revealed by the impressive exporter and job counts,” said Ex-Im Bank Chairman and President Fred P. Hochberg. “Ex-Im Bank’s financing offsets foreign export-credit-agency competition and provides American exporters with a level playing field. The result is the continued success of American technology and expertise.”

“We are very pleased to support Reliance in this important expansion project,” added Lillian Labbat, managing director, J.P. Morgan. “The unique conversion options, utilizing bond and direct loan financing, demonstrate Ex-Im’s focus on delivering competitive solutions while fostering U.S. exports and job growth.”

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.

“We are once again partnering with major U.S. suppliers for cutting edge technology, critical project management services and equipment from a wide section of American exporters for rolling out our next phase of growth,” said Alok Agarwal, Reliance’s chief financial officer. “We value our long standing relationship with Ex-Im Bank and this landmark transaction further strengthens the partnership. This landmark transaction reaffirms the catalyst role played by Ex-Im Bank in facilitating trade between U.S. and India. We also sincerely appreciate the role played by JPMorgan Chase in this important transaction for us.”

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.’

Fluor Corporation, one of the U.S. exporters participating in the transaction, is a FORTUNE 500 company that delivers engineering, procurement, construction, maintenance, and project management services to governments and clients in diverse industries around the world. The company is headquartered in Irving, Texas.

“We believe this positive development for the Reliance Industries project in India will help expedite the procurement process, lay a solid foundation for a long term partnership with a very valuable partner in India, and will promote U.S. jobs,” said Otto Kjos, senior vice president, Energy & Chemicals, Fluor.

As of the end of FY 2012, Ex-Im Bank credit exposure in India totaled $6.5 billion.