Vedanta may tap credit funds for raising up to $1 billion

  • India Infoline News Service |
  • 16 Mar, 2023 |
  • 9:29 AM
  • Vedanta needs to raise funds for meeting upcoming loan repayments.

According to sources, Vedanta Group has expanded its borrowing net to credit funds such as Farallon Capital, Davidson Kempner, and Ares SSG Capital in order to meet more than $1 billion in upcoming repayments. 

The banks' pricing is 300 basis points higher than the expected rate, they claim. THL Zinc Ventures, a wholly owned subsidiary of India-listed Vedanta Ltd (VDL), is negotiating a lower asking rate with global lenders such as JP Morgan, Barclays, Standard Chartered Bank, and Deutsche Bank.

The loan, for which talks with banks began a month ago, was expected to be raised at the secured overnight financing rate, or SOFR+500 basis points. According to the people cited above, the lenders have provided a term sheet at SOFR+800 bps for the 3-3.5-year loan. The current SOFR is 4.55%.

After the government opposed the Hindustan Zinc (HZL) board's move to buy THL Zinc Ventures in a $2.98 billion cash deal, Vedanta has been looking into ways to raise funds to meet upcoming maturities.

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