RIL to raise $ 2bln via ECB

New Delhi, Feb 24 (UNI) Mukesh Ambani's Reliance Industries Ltd will raise two-billion dollars through External Commercial Borrowings to finance its capital expenditure plan for oil and natural gas exploration.

The company's board which met today accorded its approval to raise further equity by way of preferential issue of 12 crore warrants ti the promoters.

While an amount equal to 10 per cent of the price will be paid on allotment of the warrants, the remaining 90 per cent will be paid at the time of subscription of the equity shares within a period of 18 months.

Post the issue, the company's paid-up capital will increase to Rs 1,513 crore from the present Rs 1,393 crore.

''The board's approval to enhance the equity capital of the company by preferential issue of warrants to promoters demonstrates our commitment to value creation. The substantial enhancement of shareholders funds will take RIL to a high growth platform by strengthening its capital structure,'' Mr Mukesh Ambani, Chairman, RIL said.

The Board of Directors have also agreed to build a two mmpta integrated cracker and petrochemical complex at Jamnagar SEZ at a cost of three billion dollars. The cracker will use refinery off gases and other byproducts as feed stock to manufacture ethylene, proplyne and its downstream commodity and speciality derivatives.

The proposed complex, one of the largest in the country, is expected to go on stream by 2010-11.

Besides, Former Council of Scientific and Industrial Research (CSIR) chief R A Mashelkar has been appointed as an indepnedent director on the board.

UNI