Vedanta Resources To Close $3 Billion Refinancing Deal

According to the reports, Vedanta Resources Plc is in talks with Standard Chartered Bank and JPMorgan Chase to close a refinancing deal of $3 billion. Yes, you heard it right, billionaire Anil Agarwal of Vedanta Resources Plc is trying to secure a $3 billion refinancing deal to stave off a default, a source familiar with the matter said on condition of remain anonymous. Vedanta Resources is a mining and metals conglomerate, its top management held meetings across Europe and the US with several large banks over the past few weeks, two people on request to be anonymous said. In case, you are interested in knowing more about this major development, stick with this page and go through it till the end. Swipe down the page.

Vedanta

Vedanta Resources To Close $3 Billion Refinancing Deal

Anil Agarwal in a bid to stave off a default is talking with JPMorgan Chase and Standard Chartered Bank. For the past few weeks, Vedanta Resources’s top management has held meetings with several large banks across the US and Europe. Vedanta Resources owns 63.7 percent of Vedanta Limited of India. Currently, Vedanta Resources is eyeing bond repayments of $3.1 billion coming up next season. While abundant dividends from its units have helped the London-based parent to follow payment obligations so far, it has weakened the cash reserves of Vedanta Ltd and other associations by limiting their growth potential. Continue reading this article and learn more.

Not to mention, the increasing borrowing rates have led billionaire Anil Agarwal to face challenges. His mining empire is looming with substantial repayments while the parent company based in London is pursuing debt refinancing in the short term. Vedanta Limited announced a reconstruction on Friday through multiple demergers. It has accumulated a net debt of Rs 59,191 crore as of June 30, which is double that in the past year, Rs 26,799 crore. Take a look below and read more details.

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In FY23, Vedanta Resources’ Indian units Vedanta Ltd and Hindustan Zinc Ltd reportedly paid out a total dividend of $1.2 billion and $4 billion, respectively, to their shareholders. As a result, the parents received $2.5 billion. Vedanta Resources has mainly relied on these dividends to deleverage its balance sheet. However, over the past year Vedanta Resources also has monetized a 6% stake in Vedanta Ltd. Accordingly, Vedanta Resources’ debt stood at $9.06 billion as of 31 March 2022, which has declined to $5.9 billion in June 2023. $1 billion dollar bonds of Vedanta Resources Finance II Plc, are maturing on January 21, 2024.

Amzad Khan
Amzad Khan

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