RLPC-UPDATE 1-Nestle increases loan to 6.5 bln euros - company

* Loan raised 7.5 bln euros despite record low pricing

* Opens door to loan refinancing round in 2010

* Shows banks keen to lend to top companies-bankers

(Adds further detail, background, context)

By Tessa Walsh

LONDON, Nov 12 (Reuters) - Nestle (NESN.VX), the world's biggest food group, has increased its syndicated loan to 6.5 billion euros ($9.75 billion), the company said on Thursday.

The 364-day revolving credit was increased from an original target of 4.75 billion euros after a strong response from lenders despite a drawn interest margin of 12.5 basis points (bps), which is the lowest seen in Europe this year.

Nestle raised around 7.5 billion euros in commitments from the market and chose to increase the loan in view of its announced accelerated share buyback programme, the company said.

The success of the transaction could prompt a refinancing round in Europe next year as treasurers seek to cut borrowing costs on loans that shot up in the wake of the credit crunch.