Vedanta Ltd, the Mumbai-listed mining and oil & gas company, has announced that it has repaid USD 100 million to Standard Chartered Bank through the release of encumbrance on March 10th. This news follows earlier comments made by Vedanta Resources Ltd, the majority owner of Vedanta Ltd, that it has sufficient means to meet its debt repayment liabilities in the coming quarters.
The repayment was made pursuant to a facility agreement entered into on September 8th, 2022, between Twin Star Holding Limited as the borrower, Vedanta Resources Limited and Welter Trading Limited as original guarantors, and Standard Chartered Bank (Singapore) Limited as the original lender. The facility had an aggregate amount of USD 100,000,000.
In a filing to the Bombay Stock Exchange (BSE), Vedanta Ltd confirmed that the said facility has now been fully repaid, and the encumbrance has been released.
The news of the repayment is likely to be well-received by investors, as it demonstrates Vedanta Ltd’s commitment to managing its debt obligations and maintaining a healthy financial position. The mining and oil & gas company has been working to address investor concerns around its financial position, and this repayment is a positive step in that direction.
Vedanta Ltd is a diversified natural resources company with operations in India, South Africa, and Australia. It is a subsidiary of Vedanta Resources Ltd, a global diversified metals and mining company with operations across India, Zambia, South Africa, Namibia, Ireland, and Australia.
Vedanta Resources Ltd has recently announced several measures aimed at improving its financial position, including the sale of its stake in Hindustan Zinc Limited and Cairn India Holdings Limited, as well as a reduction in its debt levels. The company’s efforts to address its debt issues have been well-received by investors, and the news of the repayment is likely to further boost confidence in the company’s financial health.
Overall, the repayment of USD 100 million by Vedanta Ltd is a positive development for the company and its investors. It demonstrates the company’s commitment to managing its debt obligations and maintaining a healthy financial position and is likely to be seen as a step in the right direction by market participants.