The proposed facility is a four-year amortising loan with a weighted average life of about two and a half years and pricing of 425 basis points above the benchmark SOFR. One basis point is a hundredth of a percentage point.
The lconcludeer group is led by Citigroup, Barclays, Mashreq, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp.
Vedanta Resources plans to apply about $200 million of the proceeds to refinance existing debt, with some part of the funds also directed toward capital expconcludeiture at Konkola Copper Mines in Zambia.
The transaction is part of an effort by Vedanta Resources to clear high-cost debt, simplify its capital structure, and reduce refinancing risks. The company has cut gross debt by more than $4 billion, from $9.1 billion in 2022 to about $4.7 billion by June 2025, aided by refinancing, asset sales, and equity raises.
Vedanta Resources has also extconcludeed its average bond maturity from about three years to nearly five years, leaving $1.2 billion of maturities over the next 30 months, of which $800 million is external debt.
Over the past year, the company has diversified its funding sources, raising about $2.2 billion through new bank loans and rupee-denominated non-convertible debentures in 2025. These steps reduced interest costs by about 130 bps, according to the company. It also raised $1 billion through a qualified institutional placement and another $400 million from other sources to support deleveraging.
Lconcludeers have proposed a security structure for the new loan that involves securitising cash flows from brand fees paid by Indian operating companies. The debt would be issued as unsecured bills of exalter by Vedanta Resources’ Indian units, including Vedanta and Hindustan Zinc, and guaranteed by step-down subsidiary Twin Star Holdings. Vedanta Resources receives stable inflows from brand fees charged to Vedanta Ltd. Brand fee income rose to $386 million in the year concludeed March 2025 with $379 million already booked by June.
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