Vedanta Mandates Barclays To Raise Rs 1,500 Crore Loan To Pay Off Debt

According to reports, Vedanta Limited has asked Barclays Bank Plc to syndicate a loan worth Rs 1,500 crore, which it will use, among other things, to pay off current debt. The loan will be utilised for a variety of company needs, including connected costs, capex, general corporate objectives, and the repayment of current debt.

The loan will contain an exclusive pledge over shares of Hindustan Zinc and a first exclusive charge over the fixed assets of Vedanta's Tuticorin facility in Tamil Nadu, according to The Economic Times.

Barclays and Vedanta have not yet released a comment regarding the financing. This development follows news stories about Vedanta's negotiations to fund at least $1 billion with US-based Farallon Capital Management. The fundraising plan's structure is still being discussed and is not finalised.

Vedanta was reportedly in discussions for a syndicated dollar-denominated loan with JPMorgan Chase & Co. and Standard Chartered Plc. in addition to Barclays.

The business called the rumours that Chairman Anil Agarwal was considering selling less than 5% of Vedanta's stock "untrue and baseless."

The issuing of non-convertible debentures in an amount up to Rs 2,100 crore on a private placement basis was approved by the Vedanta board on Thursday.

Infact the proposal to issue non-convertible debentures (NCDs) in order to fund up to Rs 2,100 crore has also been authorised by the board of directors of mining giant Vedanta Ltd. According to a regulatory filing from Vedanta Ltd, the plan was approved on Thursday during a meeting of its Committee of Directors.

On April 13, 2023, the Committee of Directors discussed and approved issuing up to 21,000 secured, unrated, unlisted, redeemable NCDs with face values of Rs. 10,000 each through a private placement, up to Rs. 2,100 crore in a single or many tranches.

The corporation announced that a private placement will be used to issue it. A diversified international natural resources corporation, Vedanta Ltd. is a division of Vedanta Resources Ltd.