Vedanta Resources Raises $350 Million To Refinance Debt and Strengthen Balance Sheet

Vedanta Resources, the natural resources holding company promoted by Anil Agarwal, has arranged $350 million in new financing from a consortium of international banks, as per The Economic Times report.  

The 3.5-year facility will be used to refinance upcoming maturities, meet interest payments, and support general corporate purposes. 

The move forms part of the group’s broader effort to improve its credit profile and extend debt tenors after a period of elevated leverage. 

Global Banks Back 3.5 Year Facility 

The lending consortium comprises First Abu Dhabi Bank, Mashreq Bank, Standard Chartered, Deutsche Bank, and JPMorgan. The facility is priced at SOFR + 435 basis points. 

Vedanta Resources Limited is the borrower, while Twin Star Holdings, which owns 40.02% of Vedanta Limited, is acting as guarantor. The proceeds will primarily refinance existing borrowings at the offshore holding company level, whose operating businesses are set to be reorganised into 5 separate verticals. 

This transaction follows earlier borrowings in December, including a $150 million 6-month loan from Citigroup priced at SOFR + 300–400 basis points, and an $80 million facility from Bank of Maharashtra priced at SOFR + 440 basis points with a 3–4-year tenor.  

A larger $500 million loan involving Barclays, Mashreq, Standard Chartered and Sumitomo Mitsui Banking Corp supported refinancing and capital expenditure at Konkola Copper Mines in Zambia. 

Debt Reduction and Funding Cost Improvement 

Vedanta Resources has reduced gross debt to about $4.7 billion as of June 2025, down from $9.1 billion in 2022. The deleveraging has been driven by liability management exercises, asset monetisation and equity infusions. 

Average bond maturities have been extended to nearly 5 years. Around $1.2 billion is due over the next 30 months, including roughly $800 million of external debt. 

Over the past year, the company has raised about $2.2 billion through bank loans and rupee non-convertible debentures. This has lowered blended funding costs by about 130 basis points, bringing the average cost down to 10%. 

At the promoter level, a $1 billion qualified institutional placement in June 2024, along with dividend and brand fee flows, has further supported debt reduction. 

Read More: Gautam Adani Reviews ₹40,000 Crore Power Projects in Jharkhand and Bihar! 

Vedanta Share Price Performance  

As of 23 February 2026, at 9:45 AM, Vedanta Ltd share price is trading at ₹693.05 per share, reflecting a gain of 1.55% from the previous closing price. Over the past month, the stock has gained by 1.30%. 

Conclusion 

The $350 million refinancing adds to Vedanta Resources’ ongoing balance sheet management initiatives. With lower gross debt, extended maturities and reduced funding costs, the company continues to reposition its capital structure while advancing its restructuring plans. 

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