Vedanta Resources Plans $200 Million Loan Expansion Following $350 Million Deal
Vedanta Resources seeks $200 million loan top-up after $350 million deal earlier this year
The Economic Times
Image: The Economic Times
Vedanta Resources (VRL), the UK-based parent of Vedanta Ltd in Mumbai, is seeking to raise an additional $200 million to expand a previously secured $350 million club loan. The funds will support refinancing and corporate expenses, as the company continues to manage its debt effectively.
- 01Vedanta Resources aims to raise at least $200 million to expand an existing $350 million loan.
- 02The loan carries an all-in pricing of Secured Overnight Financing Rate (SOFR) plus 440 basis points.
- 03Proceeds from the loan will be used for refinancing obligations and corporate purposes.
- 04Vedanta has raised approximately $2.2 billion in the past year through various financial instruments.
- 05The company has successfully reduced its blended funding cost by about 130 basis points.
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Vedanta Resources (VRL), the UK holding company for Mumbai-listed Vedanta Ltd, is in the process of expanding a $350 million club loan by seeking an additional $200 million. This expansion is part of a strategy to refinance existing obligations and cover transaction costs. The loan, which carries an all-in pricing of Secured Overnight Financing Rate (SOFR) plus 440 basis points, has a four-year tenor and an average life of three years. The original loan agreement, signed in February, involved five banks including Standard Chartered and Deutsche Bank. Over the past year, Vedanta has successfully raised around $2.2 billion through bank loans and debentures, reducing its blended funding cost by approximately 130 basis points to 10%. The funds raised will also aid in general corporate purposes as the company continues to manage its financial commitments efficiently.
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The additional funding will help Vedanta manage its financial obligations more effectively, potentially stabilizing operations and impacting employment and investment in the region.
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