Resources conglomerate Vedanta is in talks with Barclays Bank PLC to syndicate a ₹1,500-crore loan that will be used for repayment of existing debt and other corporate purposes.
The loan has a tenor of 15 months and all-in cost of 11.5% IRR split into a running coupon of 10.5% per annum, payable monthly, and a 0.5% upfront fee, showed the term sheet.
The loan will have a first exclusive charge over the fixed assets of the Thoothukudi (Tuticorin) copper smelter in Tamil Nadu and an exclusive pledge over Hindustan Zinc shares, providing a 2.2x cover. The Supreme Court of India has recently allowed Vedanta to start maintenance work at Sterlite Copper facility in Thoothukudi, which is shut since 2018.
Source:
Economic Times
