Earlier this week, it was reported that Agarwal was analysing the sale of a minority stake in Mumbai-listed Vedanta Ltd. in a bid to reduce his business empire’s massive debt load. 
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Earlier this week, it was reported that Agarwal was analysing the sale of a minority stake in Mumbai-listed Vedanta Ltd. in a bid to reduce his business empire’s massive debt load. Anil Agarwal-controlled Vedanta Ltd has asked the Reserve Bank of India to provide guarantees for a $1 billion loan that it intends to raise through one of Vedanta's overseas subsidiaries, a report in ET said.
The loan will be raised through THL Zinc Ventures, a Mauritius-based wholly owned subsidiary of Vedanta Limited. As per the report, Vedanta Group is in talks with JP Morgan, Barclays, Standard Chartered and Deutsche Bank for the $1 billion loan.
The funds, which will be raised in the process, are expected to be upstreamed to the group’s Vedanta Resources Ltd, which is based in London.
The banks have sought 800 basis points over the secured overnight financing rate (SOFR). The Anil Agarwal-led group has been asking for the loan at a lower rate. The current SOFR is 4.55 per cent.
SOFR is the benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
Earlier this week, it was reported that Agarwal was analysing the sale of a minority stake in Mumbai-listed Vedanta Ltd. in a bid to reduce his business empire’s massive debt load. A stake sale in Vedanta comes as a last option for the mining billionaire and will only be considered if other fundraising options fail, the report cited people familiar with the development told Bloomberg News.
The main holding company, VRL, has $400 million of dollar bonds due in April and $500 million dollar bonds in May. It has another $1 billion bond maturing in January 2024.
Besides this, the holding company has $1.1 billion term debt and $600 million in interest payments coming up besides $450 million of inter-company loans.
Last week, London-based Vedanta Resources repaid $250 million in loans that the company took from Barclays Bank and Standard Chartered Bank.
The group has been servicing debt through loans and dividends from operating companies, such as VDL and Hindustan Zinc Ltd (HZL).
On March 21, Hindustan Zinc announced its fourth interim dividend for FY23. The company said it will offer a dividend of Rs 26 per share, totalling Rs 10,986 crore.
So far, VDL and HZL have announced a record four dividends this financial year.
Also read: Anil Agarwal denies any intention to sell stake in Vedanta Ltd, says report baseless, untrue
Also read: Vedanta shares: As promoters reduce pledged stake, can the stock hit new highs?
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