Hindustan Zinc Limited (HZL) has announced details regarding a facility agreement involving Vedanta Resources Limited and other related parties, dated January 30, 2026. While HZL is not a direct party to the agreement, the disclosure outlines certain restrictions and covenants impacting HZL’s operational activities, particularly concerning asset sales, investments, and mergers.
Facility Agreement Overview
Hindustan Zinc Limited (HZL) has disclosed information pertaining to a facility agreement dated January 30, 2026. The agreement involves Vedanta Resources Limited, Twin Star Holdings Limited, Vedanta Holdings Mauritius II Limited, and Welter Trading Limited.
HZL’s Role and Restrictions
While HZL is not a direct party to the Facility Agreement, certain restrictions have been imposed on HZL. These restrictions include limitations on creating security over assets, selling assets outside the ordinary course of business, and investing in or acquiring material assets or businesses outside of the core mining and metals sector. Further, HZL faces certain restrictions in Mergers.
Parties to the Agreement
The parties involved in the Facility Agreement are:
- Borrower: Vedanta Resources Limited
- Guarantors: Twin Star Holdings Limited, Vedanta Holdings Mauritius II Limited
- Agent: Madison Pacific Trust Limited
- Arrangers/Lenders: First Abu Dhabi Bank PJSC and Mashreqbank PSC
Facility Details
The Facility Agreement has been entered into for a total commitment aggregating up to US$ 350,000,000. The purpose is primarily for repayment of financial indebtedness, payment of related expenses, and general corporate purposes of the VRL Group.
Source: BSE
