GLAS Agency Creates Encumbrance Over Vedanta Ltd Shares Under US$ 2.25 Billion Facility Agreement

GLAS Agency Creates Encumbrance Over Vedanta Ltd Shares Under US$ 2.25 Billion Facility Agreement​

A facility agreement has been executed, leading GLAS Agency (Hong Kong) Limited to create an encumbrance over a significant portion of Vedanta Limited's shares. The arrangement involves Vedanta Resources Limited and its subsidiaries securing financing from a consortium of international banks.

The total maximum commitment under the Facility Agreement amounts to US$ 2,250,000,000. Of this amount, the original lender commitment is US$ 1,545,000,000, with an additional increase commitment available up to US$ 705,000,000 from potential participating lenders.

The facility agreement was executed on July 20, 2026, involving TSHL (as the borrower), VRL, VHMLII and Welter as guarantors. The arrangers for the deal included institutions such as Barclays Bank PLC, Citigroup Global Markets Asia Limited, DB International (Asia) Limited, First Abu Dhabi Bank PJSC, J.P. Morgan Securities (Asia Pacific) Limited, Mashreq Bank PSC, Standard Chartered Bank, and Sumitomo Mitsui Banking Corporation Singapore Branch among others.

Under the terms of the Facility Agreement, several encumbrances have been placed on Vedanta Limited's shares held by the VRL group entities. These conditions dictate that no Obligor (which includes TSHL, VRL, VHMLII and Welter) shall create or permit to subsist any security over VEDL shares. Furthermore, no member of the VRL group is permitted to create a security or quasi-security over shares owned by them in an Obligor that holds shares in Vedanta Limited.

A key requirement under the agreement specifies that the VRL group must retain control over Vedanta Ltd, directly or indirectly owning at least 50.1% of its issued equity share capital. The encumbrances are being facilitated by GLAS Agency (Hong Kong) Limited acting as the agent and security agent for the Lenders.

The shares held by the VRL group entities prior to the creation of the encumbrance were detailed as follows:


The shares encumbered are those held by Vedanta Resources Limited through its direct and indirect subsidiaries, including Twin Star Holdings Ltd., Welter Trading Limited, Vedanta Holdings Mauritius Limited, Vedanta Holdings Mauritius II Limited, and Vedanta Netherlands Investments B.V.

VEDL Stock Price Movement​

As of 9:58 AM, shares of Vedanta Limited are edging higher to ₹266.65, having gained 1.66% or ₹4.35 in live trading. The stock sees robust interest, with over 2.86 million shares changing hands as the company continues its climb.