Mumbai, April 17 Vedanta Limited on Friday said it has secured a $125 million external commercial borrowing deal, but the agreement comes with strict conditions, including a restriction on diluting its stake in subsidiary Hindustan Zinc Limited and a mandate to retain majority ownership until the loan is fully repaid.
The company signed a facility agreement on April 14 with JPMorgan Chase Bank N.A., acting through its GIFT City branch as the mandated lead arranger and bookrunner, while also serving as the original lender.
Axis Trustee Services Ltd. has been appointed as the agent for the deal, according to its stock exchange filing.
As part of the agreement, Vedanta will have to maintain at least 50.1 per cent direct ownership in its subsidiary Hindustan Zinc Limited, until the loan is fully repaid.
The company is also required to retain direct control over the subsidiary during this period.
The filing further stated that Vedanta cannot create any security on, or sell, its 50.1 per cent stake in Hindustan Zinc until the borrowing is completely settled.
Currently, the Anil Agarwal-led firm holds a 60.71 per cent stake in Hindustan Zinc, of which nearly 92 per cent is already pledged against existing loans.
On the market front, Vedanta shares were trading 0.3 per cent lower on the NSE, even as the benchmark Nifty rose by a similar margin.
However, the stock has delivered strong gains of about 29 per cent so far this year.
In last five days, the shares were trading 6.45 per cent higher. The gains pronounced on higher timeframe as the stock delivered around 13 per cent to its investors in last one month.
Meanwhile, the death toll from the boiler explosion at the Vedanta Power Plant in Singhitarai village in Chhattisgarh's Sakti district earlier this week, has risen to 20, with 15 workers still battling injuries in hospitals.
The tragic incident, which took place on April 14, at 2:33 p.m., has sent shockwaves through the industrial belt of Chhattisgarh.
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