Vedanta In Talks With Standard Chartered for $1.3 Billion Loan: Report

Vedanta Resources is in a discussion with Standard Chartered Bank for borrowing between $1.2 billion to $1.3 billion against brand fee receivables without any restructuring pre-conditions, according to a report by The Economic Times.

The report further revealed that parent-firm of publicly listed Vedanta Limited is in need of cash and is in need of funds worth ₹1.3 billion in FY24 and $ 4.3 billion in FY 25.

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The company is looking to refinance $3.8 billion worth of bonds maturing between 2024 and 2026 with loans of extended maturities and manageable size, company officials were quoted as saying by ET.

The mining conglomerate is facing a series of bond maturities in the coming years. They have approximately $1 billion in bonds maturing in January of the following year, followed by another sizable bond maturity of the same magnitude in August 2024. Additionally, the company has $1.2 billion in bonds set to mature in March 2025, with an additional $600 million due in April 2026.

"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 – Strategy at Vedanta Resources, without giving details of the refinancing but expressed confidence in being able to achieve well before due maturities.

He further stated, “We want less big towers (size of loans) and longer maturity periods.”

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S&P Global Ratings adjusted Vedanta Resources' rating outlook from stable to negative on Thursday, citing an increased refinancing risk as the primary reason for the change. "Vedanta Resources' large debt maturities that require external financing present downside rating risk. We estimate the company will have a funding gap of as much as USD 2 billion until August 2024." the agency said.