Vedanta Ltd, a subsidiary of Vedanta Resources, has announced that it has repaid $100 million to Standard Chartered Bank through the release of encumbrance on March 10.
Vedanta in a press release dated March 14 said, “The earlier disclosure was made pursuant to facility agreement dated September 8 2022 entered into between Twin Star Holding Limited (as borrower), Vedanta Resources Limited, and Welter Trading Limited (as original guarantors), and Standard Chartered Bank (Singapore) Limited (as original lender)… for the purposes of availing a facility of an aggregate amount of $100,000,000. However, the said facility has been repaid and the encumbrance has been released.”
In an effort to convince investors the company’s debt is an acceptable limit, Vedanta Resources has recently said that the firm has always met its repayment commitments on time and has full potential to repay. Vedanta Resources had said it has pre-paid all of its debt that was due for repayment till March 2023, deleveraging by $2 billion in the past 11 months.
Vedanta Resources is the majority owner of the mining, oil, and gas company Vedanta Ltd.
“Capital is necessary for growth and nation-building. All, including sovereign, individuals and companies borrow keeping in view growth prospects and, therefore, the ability to repay,” the company said.
Adding, “We have a tremendous asset base which delivers high cash flows. There is full capability to repay. With the ongoing expansions, we expect our revenue to be $30 billion in the near term.”
In FY22, Vedanta delivered an EBITDA of $6.1 billion and a free cash flow of $3.6 billion. Vedanta had also said it is fully confident about meeting its upcoming maturities in the quarter ending June 23.
“We have multiple options for both refinancing as well as repayment through internal accruals,” it said, adding that the company was in the advanced stage to tie up required financing through a $1 billion fresh loan from a syndicate of banks.