Vedanta Ltd. Appeals For Rs.1,500 Crore Loan From Barclays
Vedanta Limited has asked Barclays Bank PLC to syndicate a Rs 1,500 crore loan to be used for debt repayment, among other things.
According to the term sheet seen, the loan has a tenor of 15 months and an all-in cost of 11.5% IRR split into a running coupon of 10.5% per annum payable monthly and a 0.5% upfront fee.
The loan will have a first exclusive charge over the Tuticorin plant's fixed assets in Tamil Nadu, as well as an exclusive pledge over Hindustan Zinc shares, providing a 2.2x cover.
The loan will be used for business purposes such as debt repayment, capex, general corporate purposes, and transaction-related expenses. The issuer has received an AA rating from rating agencies Crisil and Icra.
Requests for comment were not returned by Vedanta or Barclays.
VRL has been in talks with credit funds and banks about raising capital. Vedanta is also raising Rs 2,100 crore through NCDs in addition to the loan. It is also negotiating a $1.5-2 billion loan with Farallon Capital Management.