Reliance Industries, India’s biggest company, has secured approval from the Reserve Bank of India (RBI) to retain $2 billion in addition to the $3 billion raised last fiscal year. The loan, which was the largest syndicated facility in years, received high demand from global banks due to Reliance’s strong credit rating and cash flows. The funds will be used to support working capital needs and expand the company’s new energy and telecom businesses. This is not the first time that RBI has granted permission for such an increase, as Reliance has previously sought special permission. Spokespersons for the banking regulator and Reliance did not respond to queries regarding the matter. The loan syndication involved more than three dozen banks and was completed at the end of March. Reliance plans to draw down the extra amount later this month. The RBI’s rules on External Commercial Borrowings (ECBs) limit individual exposure at $750 million per fiscal year, requiring companies to seek special permission to raise funds beyond this amount. The loan, a five-year ECB, is the largest syndicated term loan by an Indian corporate house in the last five years. It includes participation from banks in the UK, the US, India, South Korea, Taiwan, and Mauritius. The loan proceeds were allocated to fund Reliance Industries’ capital expenditure and the 5G expansion of Jio. The loan’s interest rate is priced at 150 basis points above the Secured Overnight Financing Rate (SOFR) for Reliance and 158 basis points for Jio. SOFR is the latest global rate gauge used in debt offerings. Reliance Industries is also considering raising an additional $2 billion loan.