Aan Chccording to individuals familiar with the situation, Vedanta Group has raised $850 million via a five-year credit agreement with JP Morgase & Co and Oaktree, according to Bloomberg.
The Anil Agarwal-led consortium, according to the newspaper, has reportedly closed the acquisition only days before its deadline to pay a $500 million bond.
Following the $3 billion failure of the sale of its zinc mining subsidiary to Hindustan Zinc Ltd, Vedanta is reportedly scrambling to obtain funds. This month, according to sources cited by Reuters, the agreement expired because Hindustan Zinc’s shareholders did not approve it.
Additionally, Vedanta Group must repay $2 billion worth of US currency debts in 2024.
Investors’ worries about the group’s capacity to fulfil its commitments are reflected in the value of the group’s bonds.
According to Bloomberg statistics, Vedanta bonds with maturities ranging from August 2024 to April 2026 are now trading for less than 70 cents on the dollar, a price that is widely regarded as distressed. It is said that the May 2023 bond is now trading close to par.
The firm has declared a 68.8 billion rupee dividend, with May 30, 2023 established as the record date to assess eligibility.
Vedanta Resources, a parent company with offices in London, has been dependent on the dividends of its Indian subsidiaries. Vedanta Ltd paid out $4.6 billion in dividends over the previous fiscal year.
In response to inquiries from Bloomberg for comment, Vedanta Group, JP Morgan, and Oaktree declined, citing the sources used in the story who claimed that the topic is confidential.