Report: Vedanta Resources Receives $450 Million From Two Competitors
Vedanta Resources Ltd. (VRL), the parent company of the Anil Agarwal-led Vedanta Ltd., is said to have received $450 million from two of its competitors. According to a source, this round also reflects the difficulties the organisation has had in trying to get loans via more conventional avenues like banks and private lending.
The Economic Times reported that the commodities trading company Trafigura Group had provided $200 million in financing to VRL. VRL has raised $250 million from its competitor Glencore International AG, a mining and resource firm.
The article also states that the $150 million in debt repayments to Oaktree would be made using the money acquired from Trafigura. However, 4.4% of publicly traded Vedanta Ltd. was pledged in order to get the funds from Glencore.
The story also states that VRL may seek a new round of investment of $1 billion to compensate for repayments, citing Nomura. These are related to the bonds’ 13.875% bond dues in the fourth quarter of this fiscal year.
The changes occur at a time when several analysts and stakeholders expressed alarm about Vedanta Ltd.’s mounting debt. Even though Anil Agarwal dismissed any claims of trouble with loan repayment, several analysts have remained sceptical.
According to the magazine, one might further assume, based on exchange filings, that Agarwal has committed his whole 68.11 percent stake in Vedanta Ltd to obtain money. In a statement, VRL said, “It intends to lower gross debt to zero.”
