Vedanta Resources Secures $600 Million Loan to Refinance Debt

London-based Vedanta Resources Limited, the parent company of Indian mining conglomerate Vedanta Ltd, has secured a term loan facility of up to $600 million to refinance a high-cost private credit facility, aiming to reduce its overall debt costs and extend debt maturity. The first tranche of $380 million has already been committed by a consortium of Gulf, Japanese, and European banks including First Abu Dhabi Bank, Mashreq, Sumitomo Mitsui Banking Corp, and Standard Chartered, with the remaining $220 million expected soon. The loan carries a tenor of over four years with an average maturity of about three years and is priced at SOFR plus 450 basis points, resulting in annual interest savings of approximately $50 million. This refinancing improves Vedanta's credit profile by increasing average debt maturity beyond four years and lowering its cost of debt to single digits, supporting the company's strategy to fully repay the previous private credit facility. Vedanta Resources emphasized that this transaction reflects strong global financial institutions' confidence in its credit quality and strategic vision and supports its goal of achieving a credit rating upgrade to BB levels, with a medium-term ambition of attaining Investment Grade status. The company's focused efforts on debt reduction and prudent capital management are expected to strengthen its financial flexibility and long-term value creation.