The London-based mining conglomerate is in discussions with Sumitomo Mitsui Banking Corp. and First Abu Dhabi Bank to join the facility, which carries an all-in pricing of Secured Overnight Financing Rate (SOFR) plus 440 basis points, a four-year tenor, and an average life of three years. The SOFR has replaced the London Interbank Offered Rate (Libor) as the main reference rate for dollar bonds. Spokespersons of Vedanta and SMBC did not respond to requests for their comments, while First Abu Dhabi could not be reached for its comment.
The original tranche, signed in February, was backed by five banks: Standard Chartered, Deutsche Bank, Mashreqbank, JPMorgan, and First Abu Dhabi Bank. Proceeds will be used for refinancing existing obligations, transaction costs, and general corporate purposes.
The loan is guaranteed by promoter entities Twin Star Holdings, Vedanta Holdings Mauritius II, and Welter Trading, with encumbrances over Vedanta Ltd. shares pledged as collateral.
Over the past year, Vedanta Resources has raised about $2.2 billion through bank loans and rupee-denominated debentures, trimming its blended funding cost by roughly 130 bps to 10%. The company has also tapped equity markets, completing a $1 billion qualified institutional placement in June 2024, alongside dividends and brand fees from its Indian unit to pare debt.
