Short-term loans may be priced at Libor plus 200-250 bps, could be of 3-12 month maturities
Vedanta Resources is reportedly raising $2.5 billion in short-term loans from international banks to fund the Vedanta buyout after the proposed delisting on Indian stock exchanges was approved.
Banks such as Barclays, Standard Chartered, JP Morgan and Citi have been tapped to underwrite the facility in 3-month and 12-month maturities, sources told The Economic Times.
Moneycontrol could not independently verify the report.
The short-term loans will be priced at 250 basis point over the London Interbank Offered Rate (Libor) and will include fees, the report noted.
The banks will have covenants inclusive of dividend upstream from the group’s various firms, they added. “Loan covenants will add to the lenders’ comfort,” a source added.
Vedanta, Citi, Barclays, Standard Chartered and JP Morgan did not respond to queries as per the report.
The Anil Agarwal-led Vedanta on May 18 approved de-listing from Indian stock exchange after considering the diligence report by SBI Capital. As per agreed terms, Vedanta Resources will buy out the publicly held shares of Vedanta.