Vedanta Resources makes prepayment of loans

 Vedanta Resources has repaid its loans due this month and is negotiating with financial institutions such as Barclays and Standard Chartered to secure a $1 billion fund via its subsidiary to cover the upcoming payments of the parent company.

THL Zinc Ventures, a subsidiary of Vedanta Ltd., is in talks with banks, including public sector lenders, to raise up to $1 billion in loans with a minimum tenor of three years, according to sources. The repayment of these loans will be supported by cash flows generated by Zinc International and Vedanta Ltd, which controls the company's zinc assets in Africa and Ireland.

Global banks and some public sector banks will write the dollar loan offshore. According to one of the sources, the funds raised will be lent to Vedanta Resources, a London-based holding company, as an intercompany loan.

The company stated that it was 'fully confident' of meeting its upcoming debt maturities in the quarter ending June 2023 and that it was in the process of securing the necessary financing through a syndicate of banks.

For feedback and suggestions, write to us at editorial@iifl.com