Metals and mining giant Vedanta Ltd today said it has tied up with a plant Rs 8,000 crore with Union Bank of India to take over the majority share of the syndicated facility after discussions with lenders.
Vedanta Ltd., in its normal business, practices proactive liability management to achieve optimum capital structure, adding that in this direction, the company will explore all options to enhance its debt maturity profile and reduce its interest cost. continues to apply.
“During 2020 amid the COVID pandemic, Vedanta Limited had tied up with a syndicated facility 10,000 crore with State Bank of India as lead bank at an ongoing cost of 10.5 per cent (syndicated facility),” it said.
“After several discussions with potential lenders, we have tied up with a facilitator 8,000 crore (replacement facility) with Union Bank to take over the majority share of the syndicated facility,” Vedanta said in a BSE filing.
The replacement facility was availed on December 28 last year to take over the existing syndicated facility to reduce the overall interest cost of the company and to align the debt with the market benchmark in the normal course of business. Vedanta also said that it is not aware of any unusual trading activity in the equity shares of the company on account of this matter.
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