Vedanta Resources repays $250 million to Barclays, Stanchart

According to exchange filings, Vedanta Resources repaid $150 million to Barclays Bank and $100 million to Standard Chartered Bank. It added that the encumbrance on Vedanta shares has been released after the loan has been repaid.

Shares of Vedanta closed 0.36% higher at 280.4 on the NSE after touching day’s high. 284.9 each.

Vedanta has issued a statement clarifying that the two disclosures made in respect of facility agreements entered into with various parties to avail facility amounts totaling $250 million have now been repaid and encumbrances have been released. The first disclosure was made pursuant to a facility agreement with Standard Chartered Bank (Singapore) Limited dated September 8, 2022, while the second disclosure was made pursuant to a facility agreement dated June 16, 2022 with Deutsche Bank AG (Singapore) and Barclays Bank Plc Was. Twin Star Holding Limited, Vedanta Resources Limited and Welter Trading Limited were parties to both the agreements.

Vedanta had earlier said it has sufficient funds to meet debt servicing obligations in the coming quarters as it looks to address investor concerns about its financial health.

The mining giant said it has paid off all its loans that were due to be repaid by March this year, bringing down less than $2 billion in the past 11 months.

Besides, it is confident of meeting its liquidity requirements for the quarter ended June.

Moody’s Investors Service last week downgraded Vedanta Resources’ corporate family rating to Caa1 from B3 due to increased refinancing risks in large debt maturities.

Moody’s has also downgraded the senior unsecured bonds of Vedanta Resources and its subsidiary Vedanta Resources Finance II Plc from Caa1 to Caa2.

The CAA rating signifies very high credit risk for bad conditions and obligations. Modifier 1 means that the obligation ranks at the high end of its general rating.