Vedanta, Twin Star, and Welter Trading Seal $600 Million Loan Pact

Vedanta Resources, along with its promoter group entities Twin Star Holdings and Welter Trading, has entered into a facility agreement for a $600 million term loan. This move is aimed at refinancing existing high-cost private credit, improving the group’s debt profile, and lowering interest expenses.

 

Key Highlights:

 

Vedanta Resources, Twin Star Holdings, and Welter Trading have jointly signed a facility agreement for a $600 million term loan, with $380 million already committed by a consortium of Gulf, Japanese, and European banks including First Abu Dhabi Bank, Mashreq, Sumitomo Mitsui Banking Corp, and Standard Chartered.

 

The remaining $220 million is expected to be finalized soon with additional participating banks.

 

The facility carries a door-to-door tenor of over four years, with an average maturity of about three years, and is priced at SOFR plus 450 basis points.

 

The primary purpose is to refinance a high-cost private credit facility, resulting in annual interest savings of approximately $50 million and reducing the overall cost of debt to single digits.

 

The agreement includes standard lender protections such as asset security, operational covenants, and restrictions on mergers or changes to company documents.

 

This refinancing, combined with internal cash flows, will allow Vedanta to fully repay the previous facility, extend its debt maturity profile, and enhance its credit standing.

 

The transaction highlights continued confidence from global financial institutions in Vedanta’s long-term financial health and direction.

 

Source: Economic Times, Free Press Journal, CNBC-TV18, CFO Economic Times, Angel One, Investing.com India