Vedanta receives a loan from Oaktree and JPMorgan for roughly $850 million

24 May 2023 , 09:21 AM

The Vedanta Group’s most recent move to raise money involved taking out a new loan for around $850 million.

According to news reports, JPMorgan Chase & Co. and Oaktree signed a five-year agreement with the Indian mining company.

Investors are closely monitoring the group’s debt levels as rising interest rates put more pressure on borrowers with junk ratings. The deal is finalized just days before Vedanta Resources Ltd. is required to repay a $500 million bond.

The firm supported by one of India’s wealthiest men is looking for funds after hitting a snag in the sale of a zinc mining subsidiary to Hindustan Zinc Ltd. There are also about $2 billion in US-currency bonds that are due in 2024.

The bond prices of Agarwal’s group reflect the continuing apprehensions of investors over its financial stability.

Vedanta Ltd., the parent company of London-based Vedanta Resources, paid out Rs 377 ($4.6 billion) in dividends to its Indian subsidiaries during the most recent fiscal year.

The Mumbai-based subsidiary this week announced a Rs 68.8 billion dividend as its first payment for the new fiscal year.

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