Billionaire Anil Agarwal-led Vedanta Group is reportedly planning to raise up to $1 billion from credit funds. As per updates, the newsmaker group is now looking at widening its net for borrowings to credit funds like Farallon Capital, Davidson Kempner and Ares SSG Capital.
According to a report in the Economic Times, the move to raise this amount by Vedanta comes at a time when the credit market is tightening and banks are “talking tough on a $1 billion loan.” It adds that the pricing that is being offered by banks is 300 basis points (bps) above the expected rate.
Since the move is expected, THL Zinc Ventures, a wholly owned subsidiary of Vedanta is reportedly negotiating with global lenders, asking them to reduce their lending rate. Some of these include JP Morgan, Barclays, Standard Chartered Bank and Deutsche Bank. Explaining about the loan talks, the report adds that the amount “was expected to be raised at the secured overnight financing rate or SOFR +500 bps. The lenders have given a term sheet at SOFR +80 bps for the 3-3.5 year loan.”
It must be noted that lately, Anil Agarwal’s Vedanta has been making headlines due to its debt and repayment abilities. While recently the chief has asserted that the company can meet its debt repayment obligations easily, some stakeholders have raised their concerns.
In addition to this, as per media reports, Vedanta has also been exploring ways to raise funds in order to meet its maturities. This is underway as the government opposed the HZL board’s move to buy THL Zinc Ventures, a cash deal that was expected to amount to approximately $3 billion.
