A Vedanta Group entity is set to raise approximately Rs 135 billion ($1.4 billion) from at least three lenders, marking the conglomerate’s first major domestic loan since billionaire Anil Agarwal’s business empire was restructured into separate companies, people familiar with the matter said.
Axis Bank has already inked a Rs 55 billion loan agreement with Vedanta Aluminium Metal Ltd., according to sources who requested anonymity due to the confidential nature of the information. Meanwhile, HDFC Bank and ICICI Bank are jointly arranging roughly Rs 80 billion in financing for the newly independent company, the sources added.
Axis Bank is spearheading the loan, with plans to syndicate a portion of it among other lenders, the sources noted.
The financing carries tenors of 6.5 to 7 years, with funds earmarked to refinance debt that Vedanta Aluminium took on from the group’s earlier integrated structure. Interest rates on the loan are expected to fall between 7.9% and 8%, according to people with knowledge of the deal.
