Vedanta gets Rs 2,500 crore from Oaktree for refinancing and capex purposes

4 Oct 2023 , 11:15 AM

Oaktree Capital Management this week extended a Rs 2,500 crore financing facility to India-listed Vedanta as part of a proposed division of its assets into several divisions.

Two Oaktree Capital-backed funds subscribed to the non-convertible debentures, which will mature on March 27, 2025. Vedanta has given a 12% upfront cash incentive as well as an ‘arrangement coupon,’ according to documents.

It does not reveal any information regarding the arrangement coupon. According to the records, Oaktree-backed OCM India Opportunities XI Alternate Investment Fund subscribed to Rs 1,696.4 crore bonds, while OCM India Opportunities XB Alternate Investment Fund subscribed to Rs 803.6 crore bonds.

According to stock exchange disclosures, the company pledged shares in Sesa Iron and Steel and inked a ‘non-disposal arrangement’ over shares in ESL Steel to raise Rs 2,500 crore bonds. 

According to sources, Vedanta Ltd secured financing for its capex needs as well as to repay its current term loans due this fiscal year. The company has two distinct term loans of Rs 300 crore and Rs 1,000 crore, both due November 14, 2023, and March 31, 2024.

On September 28, Vedanta announced the issuance of Rs 2,500 crore secured non-convertible debentures without disclosing the investor or the terms of the bonds.

For feedback and suggestions, write to us at [e-mail]