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Vedanta Resources raises $1.25 billion loan from global private credit lenders

The company said the loan was raised from reputable financial institutions without disclosing the names of the lenders.

December 14, 2023 / 08:36 IST
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The transaction is crucial for the group to avoid a potential default.

Vedanta Resources Ltd (VRL), the holding company of the Vedanta group, said on Wednesday that it secured $1.25 billion from private credit lenders for debt refinancing and a new credit facility.

In a late-night statement, the company said that fundraising will help create a long-term sustainable capital structure and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business. VRL said the loan was raised from a group of reputable financial institutions to refinance existing liabilities. The company did not disclose the names of the lenders.

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VRL said it is also seeking to amend certain covenants and waivers to improve the credit package of its bonds that are due to mature in 2024 and will announce the outcome of the consent solicitation from existing lenders in due course. It said that the aforesaid loan will mature in April 2026, and is guaranteed by VRL and its various subsidiaries, and has been collateralised by a negative pledge of 13.26% shares held by the parent in India-listed Vedanta Ltd and the annual brand fee it receives from various subsidiaries.

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