Debt Repayment
Promoter group co Vedanta Resources to borrow up to $600 mln, says Vedanta
This story was originally published at 19:17 IST on 26 June 2025
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NEW DELHI – Promoter group member, Vedanta Resources Ltd., has entered into an agreement with five overseas banks to borrow up to $600 million, Vedanta Ltd. disclosed in a stock exchange filing Thursday. Vedanta Resources entered into an agreement for the borrowing facility on Tuesday with First Abu Dhabi Bank PJSC, Mashreqbank PSC, Standard Chartered Bank, Standard Chartered Bank (Mauritius) Ltd., and Sumitomo Mitsui Banking Corp. (Singapore), according to the filing.
A similar stock exchange filing on Vedanta Resources was made by Hindustan Zinc Ltd. on Thursday. Hindustan Zinc said it was making the disclosure since Vedanta Resources is a member of the promoter group of Vedanta which, in turn, is its promoter. The borrowing facility between Vedanta Resources and the five banks imposes restrictions on Vedanta and Hindustan Zinc by way of covenants.
Without the consent of the lending banks, and subject to carve-outs specified in the borrowing facility agreement, Vedanta and Hindustan Zinc cannot create security on their assets, sell or dispose assets which are not in the ordinary course, and invest or acquire material assets or businesses not associated with mining, metals, coal, oil and gas, infrastructure, energy industries. Vedanta and Hindustan Zinc also cannot amend their constitutional documents such as articles of association and memorandum of association "such that it affects rights of the lenders or has a material adverse effect under the facility agreement," without the consent of the lenders.
Similarly, the two companies cannot create restriction on distributions subject to provisions of the facility agreement. They also cannot grant loans or guarantee any debt of the promoter or any affiliate.
Vedanta Resources will use the funds borrowed under the facility agreement to pay interest on, or repay, debt of the Vedanta Resources group. Twin Star Holdings Ltd. and Welter Trading Ltd. are guarantors to the borrowings under the facility agreement. Both these companies are related parties of Vedanta and Hindustan Zinc.
On Thursday, shares of Vedanta closed higher by 3.1% at INR 455.50 on the National Stock Exchange and those of Hindustan Zinc ended 1.5% higher at INR 448.90. End
US$1 = INR 85.70
Reported by Rajesh Gajra
Edited by Ashish Shirke
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