Vedanta Limited has entered into a new facility agreement for an external commercial borrowing of US $125 million. As part of the terms, the company is mandated to maintain a beneficial holding of at least 50.1% of the issued share capital in Hindustan Zinc Limited. This agreement includes non-disposal covenants that categorize the arrangement as an encumbrance under standard reporting requirements, ensuring continued control over its subsidiary’s equity.
New Facility Agreement Details
Vedanta Limited has finalized a facility agreement for an external commercial borrowing amounting to US $125,000,000. The agreement, executed on April 14, 2026, involves JPMorgan Chase Bank N.A. (GIFT City Branch) acting as the mandated lead arranger, bookrunner, and original lender. Axis Trustee Services Limited has been appointed to act as the agent for this transaction.
Impact on Hindustan Zinc Holdings
Under the terms of the borrowing, Vedanta Limited is required to maintain a direct beneficial interest of at least 50.1% in the total issued share capital of Hindustan Zinc Limited (HZL). The company is strictly restricted from disposing of this stake or creating any new security over these specific shares until the full and final settlement of the facility has been achieved.
Clarification on Encumbrance
The company has clarified that this arrangement constitutes an encumbrance due to the non-disposal covenants associated with the borrowing. It is explicitly noted that no new pledge has been created over the equity shares of HZL in connection with this specific facility. These disclosures ensure transparency regarding the company’s ownership structure and compliance with the financial covenants established in the new lending agreement.
Source: BSE
