CorporateTT Correspondent | 25 Jun 2019
Oil-to-telecom conglomerate Reliance Industries (RIL) Tuesday said it has signed pacts with overseas lenders to avail long-term loans of USD 1.85 billion (about Rs 12,900 crore) to finance its capital expenditure.
The fund raising comes amid reports of the company planning to infuse as much as Rs 20,000 crore into its telecom unit, Jio, to bolster broadband and e-commerce play ahead of a potential entry into 5G mobile telephony services in future.
"The company has entered into agreements with offshore lenders for availing long-term loans aggregating USD 1.85 billion, primarily for meeting a part of its planned capital expenditure, in the normal course of its business," RIL said in a regulatory filing.
Without giving details of the loans such as tenure and the interest rate, it went on to say that the company on an ongoing basis evaluates financing opportunities with lenders in the normal course of business and would make requisite disclosures as per regulations.
In a separate filing on a report that the company is under government lens for alleged diversion of Rs 1,700 crore CSR fund, RIL said the Ministry of Corporate Affairs (MCA) has been seeking information from the company from time to time about its CSR activities.
"The company has been providing information in response to the requirements of MCA. The MCA has recently sought additional information on CSR projects and the company is in the process of providing the same to MCA," it said without giving details.
The filing was made after stock exchanges sought clarification from RIL on a media report that the company was under MCA lens for diverting corporate social responsibility (CSR) funds.
"The company carries out its CSR activities on a pan-India basis through its implementation agency viz. Reliance Foundation and also in cooperation with certain other reputed agencies. The company is proud to be the largest corporate contributor to CSR, in India," the filing said.
RIL said it is in compliance with CSR requirements under Companies Act, 2013 and detailed disclosure is made in the Annual Report of the company each year, duly certified by the company's statutory auditors.