Vedanta Secures USD 600 Million Loan to Enhance Financial Flexibility
Vedanta Resources Limited has secured a USD 600 million loan, with a commitment of USD 380 million from Gulf, Japanese, and European banks, to refinance its high-cost private credit facility. This refinancing is expected to enhance VRL's credit profile, reduce debt cost, and improve financial flexibility.
- Country:
- India
Vedanta Resources Limited, the London-based parent of mining conglomerate Vedanta Ltd, announced its successful acquisition of a USD 600 million term loan. This capital will replace an expensive private credit facility, enhancing its financial position and demonstrating global institutional confidence.
The first tranche of USD 380 million has been secured, sourced from a consortium including First Abu Dhabi Bank, Mashreq, Sumitomo Mitsui Banking Corp, and Standard Chartered, with the remainder to be confirmed soon. The loan, with a four-year term and an interest rate based on the SOFR plus 450 basis points, aims to reduce interest costs significantly.
This strategic refinancing results in savings of USD 50 million annually and supports VRL's plan for a credit rating upgrade. The firm seeks to reach Investment Grade status, leveraging robust earnings and a strengthened balance sheet to decrease borrowing costs and access a broader range of investors.
(With inputs from agencies.)
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