Hindustan Zinc Limited’s Facilities Agreements Are Rescinded, Lifting Restrictions on Company
Hindustan Zinc Limited (HZL) has confirmed the rescission of multiple facilities agreements, resulting in the release of prior restrictions on the company. The agreements, which relate to the promoter group of Vedanta Limited, have been fully repaid, leading to the withdrawal of all associated covenants.The disclosure pertains to three specific facilities agreements, collectively referred to as the 'Facilities Agreements,' which were executed in connection with the promoter group of Vedanta Limited. These agreements, dated April 17, 2025, June 24, 2025, and January 30, 2026 (as amended and supplemented with an amended and restatement deed dated May 13, 2026), involved various entities from the promoter group.
The rescission of these facilities agreements means that all restrictions on Hindustan Zinc Limited that were outlined in previous disclosures stand released.
Parties to the Facilities Agreements
The initial facilities agreement dated April 17, 2025, included the following parties:| Role | Entities |
|---|---|
| Borrower | Twin Star Holdings Ltd. |
| Guarantors | Vedanta Resources Limited, Welter Trading Limited |
| Arrangers | Barclays Bank PLC, First Abu Dhabi Bank PJSC, Mashreqbank PSC, Deutsche Bank AG (Singapore Branch) |
| Agent | Kroll Trustee Services (HK) Limited (formerly, Madison Pacific Trust Limited) |
| Lenders | Barclays Bank PLC, First Abu Dhabi Bank PJSC, Mashreqbank PSC, Standard Chartered Bank (Mauritius) Limited, Deutsche Bank AG (Singapore Branch), Standard Chartered Bank, GIFT City |
The second set of facilities agreements featured Vedanta Resources Limited as the Borrower. The parties associated with this facility included:
| Role | Entities |
|---|---|
| Borrower | Vedanta Resources Limited |
| Guarantors | Twin Star Holdings Ltd., Welter Trading Limited |
| Arrangers | First Abu Dhabi Bank PJSC, Mashreqbank PSC, Standard Chartered Bank, Standard Chartered Bank (Mauritius) Limited, Sumitomo Mitsui Banking Corporation (Singapore Branch) |
| Agent | Kroll Trustee Services (HK) Limited (formerly, Madison Pacific Trust Limited) |
| Lenders | First Abu Dhabi Bank PJSC, Mashreqbank PSC, Standard Chartered Bank, Standard Chartered Bank (Mauritius) Limited, Sumitomo Mitsui Banking Corporation (Singapore Branch) |
The facilities agreement dated January 30, 2026, as amended and supplemented, involved Vedanta Resources Limited as the Borrower. The entities involved in this agreement were:
| Role | Entities |
|---|---|
| Borrower | Vedanta Resources Limited |
| Guarantors | Twin Star Holdings Ltd., Welter Trading Limited |
| Agent | Kroll Trustee Services (HK) Limited (formerly, Madison Pacific Trust Limited) |
| Arrangers/Lenders | Bank of Maharashtra IFSC Banking Unit, DB International (Asia) Limited, First Abu Dhabi Bank PJSC, Mashreqbank PSC |
Rescission Details and Impact
The rescission of the Facilities Agreements was executed pursuant to the repayment of the facilities and all other liabilities under the respective agreements.The agreements required the respective borrowers and guarantors (members of the promoter group of Vedanta Limited, which is the promoter of Hindustan Zinc Limited) to ensure that Hindustan Zinc Limited would not undertake certain actions or activities unless specifically permitted within the parameters of the Facilities Agreements.
The rescission means that all the restrictions on Hindustan Zinc Limited that were disclosed in the earlier reports, which covered the facilities, are now released.
HINDZINC Stock Price Movement
Shares of Hindustan Zinc Limited settled lower today after shedding 1.89% to close at ₹592.60. The stock traded amidst strong activity, reporting a total volume of 9.51 million shares for the day.Disclaimer: Due care and diligence have been taken in compiling and presenting news and market-related content. However, errors or omissions may arise despite such efforts.
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