Vedanta: $150 mn facility fully repaid, share encumbrances released

Vedanta Ltd on Thursday informed stock exchanges NSE and BSE that its promoter group entities have fully repaid all dues under a $150 million facility agreement entered into with Union Bank of India, DIFC Branch, Dubai.

As per Vedanta’s disclosure, the facility agreement was executed among Twin Star Holdings Limited (borrower), Vedanta Resources Limited (VRL), and Welter Trading Limited (WTL) as guarantors, with Union Bank of India’s DIFC branch acting as the original lender, arranger, and agent.

To secure the facility, an encumbrance — as defined under Chapter V of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations — had been created over the equity shares of Vedanta Limited held by VRL’s subsidiaries, namely Twin Star Holdings Limited, WTL, Vedanta Holdings Mauritius Limited (VHML), Vedanta Holdings Mauritius II Limited (VHMLII), and Vedanta Netherlands Investments B.V. (VNIBV).

Following the complete repayment of the facility, Vedanta confirmed that all encumbrances created pursuant to the agreement have now been released. The company clarified that no pledge was created by any of the promoter group entities over the equity shares of Vedanta Limited in connection with this facility.

At 9.26 am, the scrip was trading 0.14 per cent lower at Rs 472.10 on BSE.

The disclosure was made under Regulation 29(2) read with Regulation 29(4) of the Takeover Regulations, considering the definition of ‘encumbrance’ under Chapter V of the said regulations.