Billionaire Anil Agarwal’s Vedanta Resources Ltd. said it has repaid $800 million worth of loans, another move that could assuage concerns about its liquidity after surging interest rates intensified pressure on low-rated borrowers with heavy debt loads.
The London-based firm has repaid three facilities, which were taken from Standard Chartered Bank in London and Hong Kong, the company said in an exchange filing. The repayments released the encumbrances created on the shares of its unit Vedanta Ltd., it said.
Vedanta Resources has relied on hefty dividends from its Indian units, taking up record amounts last financial year, to honor its near-term liabilities. The market now focuses on how the mining giant will service its dollar notes due this month and an even bigger debt pile coming due in 2024, when close to $2 billion of bonds will mature.
The company had paid all loans and bonds due last month, cutting its gross debt to $6.8 billion, it said in a statement in April.
(By Divya Patil)
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