Anil Agarwal-led Vedanta Ltd’s parent, Vedanta Resources Ltd. (VRL) has reportedly raised $450 million from two of its rivals. As per a report, this round also reflects the challenges being faced by the group in seeking to borrow through more traditional channels like banks and private credit.
According to a report in the Economic Times, VRL has managed to raise $200 million in finance from Trafigura Group, a commodities trading firm. From the other rival, Glencore International AG, a mining and natural resources company, VRL has raised $250 million.
The report adds that the funds raised from Trafigura will be used to make debt repayments of $150 million to Oaktree. However, those raised from Glencore was done by pledging 4.4 per cent of listed Vedanta Ltd.
Citing Nomura, the report adds that VRL may also go for a fresh round of funding of $1 billion to finance repayments. These will have to do with its dues on 13.875 per cent bonds in Q4 of this fiscal year.
The developments come at a time when several analysts and stakeholders raised concerns over the piling debt of Vedanta Ltd. While Anil Agarwal brushed aside any reports of debt repayment difficulties, some analysts continue to raise their doubts.
As per the publication’s report, based on exchange disclosures, one can also infer that Agarwal has pledged his entire holding of 68.11 per cent in Vedanta Ltd to raise funding. VRL said in a statement, “It intends to lower gross debt to zero.”