 "Vedanta ties up with SBI for long-term syndicated loan of Rs 10,000 cr")
Vedanta Ltd on Monday said it has tied up with State Bank of India for a long-term syndicated loan facility worth Rs 10,000 crore.
A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower.
"Vedanta Ltd has tied up a long-term syndicated loan facility for Rs 10,000 crore with State Bank of India as facility agent and SBICAP Trustee Company Ltd as the security trustee with door to door tenor of seven years," Hindustan Zinc, a subsidiary of Vedanta, said in a filing to the BSE.
State Bank of India has given a commitment of Rs 5,000 crore as a lender, it said.
The facility end use stipulates refinancing of near-term debt maturities of Vedanta and for capital expenditure of the metals and mining giant, it said.
"This extends maturity profile, improves liquidity ratio and reinforces the commitment of lenders in the growth story of Vedanta Ltd," it said.
Also Read
Security is provided by way of pledge over the shares held by the company in Hindustan Zinc Ltd, representing 14.82 per cent of the paid-up share capital of HZL which will be released in a phased manner as per the terms of the facility.
"The company has also given a non-disposal undertaking in respect of its shareholding in HZL to the extent of 50.1 per cent of the paid-up share capital of HZL which shares are not pledged at all," the filing said.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)