Anil Agarwals Vedanta raises about $850 million Via JPMorgan Oaktree loan
Billionaire Anil Agarwals debt-strapped Vedanta Group took out a fresh loan for about $850 million, its latest effort to come up with funds. The Indian mining company inked a five-year deal with JPMorgan Chase & Co and Oaktree, according to people familiar with the matter, who asked not to be named because the matter is private. Investors have a close eye on the groups debt load, as surging interest rates intensify pressure on junk-rated borrowers. The transaction takes place just days before Vedanta Resources Ltd. must pay back a $500 million bond. With roughly $2 billion of US-currency bonds also coming due in 2024, the group backed by one of Indias richest men is on a quest for cash after its via the sale of a zinc mining unit to Hindustan Zinc Ltd. hit a roadblock. Investors lingering concerns about the finances of Agarwals group are reflected in its bond prices. Bloomberg-compiled data show the Vedanta Resources Ltd bonds due in August 2024 and April 2026 are trading below 70 cents a dollar, a level thats generally considered distressed. The May 2023 bond, however, is trading just below par. London-based parent Vedanta Resources has relied on hefty dividends from its Indian units, with Vedanta Ltd making 377 billion rupees ($4.6 billion) worth of payouts last fiscal year. The Mumbai-based subsidiary this week announced its first payout for the new fiscal year in the form of a 68.8 billion rupee dividend. A spokesperson for Vedanta didnt comment when contacted by Bloomberg. JPMorgan didnt respond to an emailed request for comment, while Oaktree declined to comment.
Wednesday, May 24, 2023 at 3:31 am