Vedanta intends to use credit funds to raise up to $1 billion
ECONOMY & POLICY

Vedanta intends to use credit funds to raise up to $1 billion

According to people familiar with the matter, Anil Agarwal's Vedanta Group has turned to credit funds such as Farallon Capital, Davidson Kempner, and Ares SSG Capital to borrow more than $1 billion to meet upcoming repayments. This move comes as banks are tightening credit for the mines and minerals giant, which has been negotiating with global lenders such as JP Morgan, Barclays, Standard Chartered Bank, and Deutsche Bank to lower their asking rate for a $1 billion loan.

The loan was expected to be raised at the secured overnight financing rate (SOFR) plus 500 basis points, but the lenders have given a term sheet at SOFR plus 800 basis points for the 3-3.5-year loan. Vedanta is exploring ways to raise funds to meet upcoming maturities after the government opposed the Hindustan Zinc (HZL) board's move to buy THL Zinc Ventures in a $2.98 billion cash deal.

Vedanta Resources Limited (VRL) is also in talks with private funds to raise $750 million to $1 billion to refinance the facility. VRL has large repayments in the next quarter, including US dollar bonds of $400 million in April and $500 million in May, along with another $1 billion bond maturing in January 2024, $1.1 billion term debt, $600 million interest payments, and $450 million inter-company loans.

According to people familiar with the matter, Anil Agarwal's Vedanta Group has turned to credit funds such as Farallon Capital, Davidson Kempner, and Ares SSG Capital to borrow more than $1 billion to meet upcoming repayments. This move comes as banks are tightening credit for the mines and minerals giant, which has been negotiating with global lenders such as JP Morgan, Barclays, Standard Chartered Bank, and Deutsche Bank to lower their asking rate for a $1 billion loan. The loan was expected to be raised at the secured overnight financing rate (SOFR) plus 500 basis points, but the lenders have given a term sheet at SOFR plus 800 basis points for the 3-3.5-year loan. Vedanta is exploring ways to raise funds to meet upcoming maturities after the government opposed the Hindustan Zinc (HZL) board's move to buy THL Zinc Ventures in a $2.98 billion cash deal. Vedanta Resources Limited (VRL) is also in talks with private funds to raise $750 million to $1 billion to refinance the facility. VRL has large repayments in the next quarter, including US dollar bonds of $400 million in April and $500 million in May, along with another $1 billion bond maturing in January 2024, $1.1 billion term debt, $600 million interest payments, and $450 million inter-company loans.

Next Story
Infrastructure Transport

JNPA Becomes First Indian Port to Cross 10 Million TEU Capacity

The Jawaharlal Nehru Port Authority (JNPA), located at Uran in Navi Mumbai, has become the first port in India to achieve over 10 million TEUs (twenty-foot equivalent units) in container handling capacity.With the recent expansion, the port now operates five container terminals with a combined capacity of 10.4 million TEUs, alongside two liquid and two general cargo terminals.Handling more than half of India’s container traffic, JNPA processed 7.05 million TEUs in 2024 and has moved 15.39 million tonnes of containers and 16.64 million tonnes of total cargo in the first two months of FY 2025â..

Next Story
Infrastructure Transport

Nod for Rs. 36.26 billion Expansion of Pune Metro Line 2

The Union Cabinet has approved the Rs.36.26 billion expansion of Pune Metro Line 2, adding 12.75 km of track and 13 new stations to improve east–west connectivity across the city.The project aims to link Pune’s urban core with rapidly growing suburbs, supporting the city’s rising demand for efficient and sustainable transport solutions. This expansion is part of Corridor 2 of the Pune Metro and includes two key routes: Vanaz to Chandani Chowk (Corridor 2A) and Ramwadi to Wagholi/Vitthalwadi (Corridor 2B).It will connect residential, IT, and educational hubs in areas such as Bavdhan, Koth..

Next Story
Infrastructure Transport

Assembly begins for ‘Nayak’ TBM on Thane– Borivali Twin Tunnel Project

The assembly of ‘Nayak’, the first of four Tunnel Boring Machines (TBMs) for the Thane–Borivali Twin Tube Tunnel Project, has commenced at the Thane site. Built by German firm Herrenknecht AG and deployed by Megha Engineering & Infrastructure (MEIL), the TBM marks a key milestone in Mumbai’s ambitious 11.8-km underground road corridor beneath Sanjay Gandhi National Park.The twin tunnels will reduce the Thane–Borivali travel distance by 12 km and decongest Thane Ghodbunder Road. ‘Nayak’, with a 13.2-metre diameter, is designed to bore through challenging geological conditions ..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?