Vedanta Resources in talks with Standard Chartered Bank for $1.3 billion loan

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Vedanta Resources

Vedanta Resources is in talks with Standard Chartered Bank for borrowing $1.2 billion to $1.3 billion of loan against brand fee receivables without any restructuring pre-conditions, reported ET.

The parent-firm of publicly listed Vedanta Limited is currently in the need of cash and is in the need of funds worth ₹1.3 billion in FY24 and $ 4.3 billion in FY 25, reported ET’s Shilpy Sinha.

The company is looking to refinance its $3.8 billion worth of bonds maturing between 2024 and 2026 with loans of extended maturities and manageable size.

The mining major has about $1 billion of bonds that are maturing in January next year. Moreover, a similar size is also up for maturity in August 2024. Another $1.2 billion bonds are due in March 2025 and another $600 million in April 2026.

“We are looking to put in place a refinancing package that will include deleveraging (some debt), extending maturities and manageable size,” said Omar Davis, President – Strategy at Vedanta Resources.

“We want less big towers (size of loans) and longer maturity periods,” he said.

Vedanta Resources has debt maturities of about $3 billion from now until August 2024, said S&P Global Ratings while revising Vedanta’s rating outlook to negative in August starting.

The downgrading “reflected the heightened refinancing risk”.

“Vedanta Resources’ large debt maturities that require external financing present downside rating risk,” it had said. “We estimate the company will have a funding gap of as much as USD 2 billion until August 2024.”

www.livemint.com/companies/news/vedanta-resources-in-discussion-with-standard-chartered-bank-for-1-3-billion-dollar-loan-11693976247990.html

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