Vedanta Limited has successfully entered into a new facility agreement to secure US $125 million in external commercial borrowing. As part of this financial arrangement, the company has provided specific undertakings regarding its stake in its subsidiary, Hindustan Zinc Limited. Under the terms, Vedanta is committed to maintaining a direct beneficial holding of at least 50.1% of the issued share capital of Hindustan Zinc and retaining operational control until the facility is fully settled.
Strategic Financing Agreement
On April 14, 2026, Vedanta Limited executed a facility agreement to avail an external commercial borrowing totaling US $125 million. This transaction involved JPMorgan Chase Bank N.A. (GIFT City Branch), serving as both the Mandated Lead Arranger and Bookrunner, as well as the Original Lender. Axis Trustee Services Limited has been appointed as the agent to manage the facility.
Commitment to Hindustan Zinc
The agreement includes strict covenants designed to ensure the financial stability of the underlying assets. Until the full and final settlement of this $125 million facility, Vedanta Limited is mandated to hold directly at least 50.1% of the issued share capital of Hindustan Zinc Limited. Furthermore, the company is restricted from creating any security over or disposing of this 50.1% stake in its subsidiary.
Ongoing Financial Strategy
This disclosure highlights the company’s continued management of its capital structure. The agreement reinforces Vedanta’s long-term commitment to its subsidiary, Hindustan Zinc, by ensuring that the parent company maintains controlling interest and beneficial ownership as a fundamental condition of the loan agreement. The funds raised will be utilized in accordance with the broader financial strategy of the company as it navigates its current capital requirements.
Source: BSE
