Vedanta Secures $300 Million in Loans for Refinancing Drive

Vedanta Resources has secured $300 million in loans from major global banks including Barclays and First Abu Dhabi Bank to refinance its 2024 and 2026 bonds. The company aims to enhance its liquidity position and is in talks for an additional $200 million.

Vedanta Resources, a leading parent firm of the Mumbai-based mining conglomerate Vedanta Ltd, announced on Friday that it has successfully secured $300 million in loans from a coalition of top-tier international banks, including Barclays and First Abu Dhabi Bank. The funds will be used to refinance outstanding 2024 and 2026 bonds and address other debt-servicing commitments, as stated by Vedanta in an exchange filing.

The company is actively looking to increase the loan deal's size and is in advanced discussions with additional banks to raise an extra $200 million. This strategic financial maneuver aims to bolster the group's liquidity, leveraging strong credit improvements attributed to significant deleveraging efforts achieved via robust business performance and strategic initiatives.

The UK-based Vedanta Resources previously raised $800 million through a new bond issuance, earmarking the proceeds for prepayment of debt due in 2028. In September, the company issued $900 million in its first dollar bond in over two years, aligning with its broader strategy to improve its capital structure and manage liquidity effectively by engaging in the bond markets.

(With inputs from agencies.)