Vedanta Resources nears $3 billion refinancing deal

JPMorgan Chase and Standard Chartered to offer loan at higher interest rates

- Anirudh Laskar

Billionaire Anil Agarwal’s Vedanta Resources Plc is in advanced talks with JPMorgan Chase and Standard Chartered Bank (StanChart) to secure a $3 billion refinancing facility to stave off a default, people familiar with the development said.

The top management of the mining and metals conglomerate held meetings with several large banks across Europe and the US over the past few weeks, the two people said, requesting anonymity.

Vedanta Resources, which owns 63.7% of India’s Vedanta Ltd, is staring at bond repayments of $3.1 billion coming up in 2024-25. While generous dividends from its units have helped the London-based parent meet payment obligations so far, it has depleted the cash reserves of Vedanta Ltd and other units, limiting their growth potential.

 

Rising borrowing costs have significantly increased the challenges faced by Agarwal’s mining empire. With substantial repayments looming, the London-based parent is pursuing debt refinancing in the short term and considering share sales in its units to reduce its debt burden.

Vedanta Ltd, which announced a major restructuring via multiple demergers on Friday, has amassed a net debt of ₹59,192 crore as of 30 June, doubling in the past year from ₹26,799 crore, according to regulatory filings.