Facility Agreement Total Commitment Reaches US$ 2.25 Billion for Vedanta Oil and Gas Ltd

Facility Agreement Total Commitment Reaches US$ 2.25 Billion for Vedanta Oil and Gas Ltd​

Vedanta Oil and Gas Limited, formerly Malco Energy Limited, is bound by a significant Facility Agreement dated July 20, 2026. The agreement involves key entities within the promoter group of VOGL, providing financing support and imposing certain covenants on VOGL related to the financial health and operations of its affiliated companies.

The Facility Agreement has been structured to meet multiple needs for the Vedanta Resources Limited (VRL) Group. Its purposes include the repayment of Financial Indebtedness owed by the VRL Group, as well as payment of fees, costs, and expenses incurred in connection with transactions contemplated under the Finance Documents. These funds are intended for general corporate purposes of the VRL Group, provided that no proceeds may be used to finance or refinance thermal coal infrastructure or any activity used in violation of applicable law.

Agreement Parties and Financial Scope​

While Vedanta Oil and Gas Limited is not a signatory to the Facility Agreement, it is subject to identified clauses within the contract which are effective from either the first Utilisation Date or the date of execution. The agreement has established a maximum commitment aggregating US$ 2,250,000,000.

The parties involved in this facility include:

• Twin Star Holdings Ltd., designated as the Guarantor.
• Vedanta Resources Limited (VRL), which is a member of the promoter group and holds no direct shareholding in VOGL.
• Vedanta Holdings Mauritius II Limited, which is classified as a member of the promoter group holding 12.60% shares in VOGL.
• Welter Trading Limited, which serves as an Agent and is a related party holding 0.98% shares in VOGL.

As on the date of this notification, the original lenders' commitment stands at US$ 1,545,000,000. The agreement includes provision for an increase commitment of up to US$ 705,000,000, which is available from one more lender executing an accession agreement under the terms of the Facility Agreement.

Restrictions and Operational Covenants​

The Facility Agreement outlines standard representations, warranties, and covenants designed to protect the Lenders. No direct liabilities have been imposed on VOGL; however, restrictions and limitations are placed through covenants agreed upon by the Borrower and the Guarantors as members of the promoter group.

These restricted activities, which become effective based on specific conditions (such as VOGL becoming a Material Subsidiary of VRL), include:

• Security and Assets: The creation of security over assets or shares of VOGL or any Obligor holding shares in VOGL.
• Disposal: The sale, transfer, and disposal of non-ordinary course assets of VOGL.
• Investment Scope: Investment in or acquisition of material assets or business by VOGL that are not associated with mining, metals, coal, oil and gas exploration and/or production, infrastructure, power or energy industries.
• Merger: Any Merger involving VOGL.

Additionally, certain other covenants affecting VOGL as a member of the Group require that VOGL does not enter into any material contract or arrangement with or for the benefit of any person outside of its ordinary course of business.

VOGL Stock Price Movement​

Shares of Vedanta Oil and Gas Limited closed down today, shedding 1.2% from the previous close to settle at ₹32.78 after trading movements in the stock. The equity saw significant activity, with nearly 47.37 million shares traded during the session.