Vedanta Ltd. on Friday announced it has agreed to avail an external commercial borrowing of $125 million or around Rs 1,160 crore. A facility agreement was signed on April 14 between Vedanta, JPMorgan Chase Bank N.A. acting through its GIFT City Branch as the mandated lead arranger and bookrunner, JPMorgan Chase Bank N.A. as the original lender, and Axis Trustee Services Ltd. as the agent, according to a stock exchange filing.
Under the terms of the agreement, Vedanta must continue to directly own at least 50.1% of the issued share capital of subsidiary Hindustan Zinc Ltd. until the loan is fully repaid. The company must also retain direct control over HZL during this period.
Vedanta is not allowed to create any security over, or dispose of, its 50.1% stake in HZL until the facility is fully settled, the filing said.
The Anil Agarwal-led company owns 60.71% equity in Hindustan Zinc. Of this, nearly 92% is pledged against loans.
Vedanta shares traded 0.3% lower on the NSE, compared to a 0.3% advance in the benchmark Nifty 50. The stock is up 29% year-to-date.
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