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

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

According to ET, Vedanta Resources is in negotiations with Standard Chartered Bank to borrow between $1.2 billion and $1.3 billion against trademark fee receivables without imposing any pre-restructuring requirements.

According to Shilpy Sinha of ET, the parent company of publicly traded Vedanta Limited is now short on cash and will require $4.3 billion in FY25 and 1.3 billion in FY24.

The business wants to replace its $3.8 billion in bonds due in 2024–2026 with loans with longer maturities and manageable sizes.

The mining giant holds bonds worth $1 billion that mature in January of the following year. Additionally, in August 2024, a similar size is also due to mature. Bonds worth another $1.2 billion and $600 million are due in March 2025 and April 2026, respectively. “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 of Strategy at Vedanta Resources. He stated, “We want longer maturities and fewer huge towers (debt sizes).

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Vedanta Resources’ Debt:

From now through August 2024, Vedanta Resources’ debt maturities total nearly $3 billion, according to S&P Global Ratings, which also changed Vedanta’s rating outlook from stable to negative beginning in August.

“The heightened refinancing risk” was “reflected” in the downgrading.

It had previously stated that “Vedanta Resources’ large debt maturities that call for external financing present downside rating risk.” We predict that until August 2024, the corporation will have a funding gap of up to USD 2 billion.  While the price of the $1 billion 6.125 percent bond, which is due in August 2024, has grown by two points to $62.50 from $60.50, the price of the $1 billion 13.875 percent bond has increased by two points to $87 from $85.

The company’s chairman, Anil Agarwal, has informed some investors of the company’s financial strategy and his potential intention to sell an additional 5% of Vedanta Limited and a small stake of Hindustan Zinc in January to raise money if necessary.

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