Hindustan Zinc Limited (HZL) has received an intimation regarding an amended facility agreement entered into by its promoter group entities, including Vedanta Resources Limited. The agreement involves a total commitment of US$ 600,000,000. While HZL is not a party to this agreement, it is subject to specific restrictive covenants concerning its assets, mergers, and financial distributions. The company has clarified that this transaction does not impact its management or control.
Agreement Overview and Upsizing
Hindustan Zinc Limited has been informed of an amendment to a facility agreement originally executed on January 30, 2026. An amended and restatement deed was executed on May 13, 2026, which significantly increased the total facility commitment from US$ 350,000,000 to US$ 600,000,000. The funds are designated for the repayment of financial indebtedness, covering transaction-related costs, and supporting the general corporate purposes of the promoter group entities.
Parties Involved
The borrower under this facility is Vedanta Resources Limited, with Twin Star Holdings Ltd, Vedanta Holdings Mauritius II Limited, and Welter Trading Limited serving as guarantors. All these entities are classified as related parties to Hindustan Zinc Limited. Other participants include Kroll Trustee Services (HK) Limited acting as the agent, along with a consortium of international banks including Standard Chartered Bank, JPMorgan Chase Bank, and First Abu Dhabi Bank, acting as lenders.
Impact and Restrictions
HZL has explicitly stated that it is not a party to the facility agreement and holds no shareholding in the entities involved. However, the agreement imposes certain restrictive covenants on HZL. These include limitations on creating security over assets, selling or transferring assets outside the ordinary course of business, and placing restrictions on distributions or providing guarantees for promoter indebtedness. Despite these conditions, the company confirms there is no direct impact on its day-to-day management or control, and no liabilities have been imposed upon HZL.
Source: BSE
