Vedanta Power Limited details $1 Billion Facility Agreement and associated covenants
Vedanta Power Limited, formerly known as Talwandi Sabo Power Limited, has confirmed details regarding a bridge facility agreement executed by promoter group entities of the company. The agreement carries a total commitment aggregating US$ 1,000,000,000.The Facility Agreement was entered into on July 15, 2026. Its primary purposes include the repayment and payment of interest and other amounts accrued on the Financial Indebtedness of the VRL Group (including Refinanced Existing Loans). The agreement also covers payments for fees, costs, and expenses incurred in connection with the transactions contemplated under the Finance Documents and general corporate purposes of the VRL Group. A key stipulation is that no proceeds from this facility may be used to finance or refinance thermal coal infrastructure.
The agreement involves several entities from Vedanta's promoter group. Twin Star Holdings Ltd. is named as the Borrower, and it is a related party to VPL, holding 40.02% of shares in Vedanta Power Limited. Vedanta Resources Limited serves as the Guarantor and is also a related party, though it has no direct shareholding in VPL. Furthermore, Vedanta Holdings Mauritius II Limited is identified as a counterparty, a related party and promoter group member that holds 12.60% shares in VPL. Welter Trading Limited is another related entity within the promoter group, holding 0.98% of shares in VPL.
The facility also includes specialized financial institutions. The Arrangers/Lenders consist of Citibank, N.A. (Original Lender), Citigroup Global Markets Asia Limited (Arranger), and Standard Chartered Bank (Arranger and Original Lender). Glas Agency (Hong Kong) Limited is noted as the Agent but is not a related party to VPL.
While Vedanta Power Limited was not a signatory to the agreement, certain "identified clauses" of the Facility Agreement are effective from the first Utilisation Date, affecting VPL as part of the Group.
The structure also imposes specific restrictions and covenants on VPL:
| Type of Restriction | Applicable Timeline | Key Scope Details |
|---|---|---|
| Identified Clauses | Effective from the first Utilisation Date (if VPL becomes a Material Subsidiary of VRL) | Include creating security over assets or shares of VPL, sale or disposal of non-ordinary business assets, investment in material businesses outside core sectors for VPL, any Merger of VPL, and restrictions on distributions. |
| Other Covenants | Effective from the date of the Facility Agreement (July 15, 2026) | Include entering into any material contract or arrangement with a third party that is not in the ordinary course of business for VPL. |
The company stated that no direct liabilities have been imposed upon Vedanta Power Limited by the agreement; rather, the limitations are defined through covenants.
VEDPOWER Stock Price Movement
Shares of Vedanta Power Limited slipped by 3.92% on Friday, closing at ₹37.90 as selling pressure took hold across the equity. The heavy trading saw the stock come perilously close to its 52-week low, with nearly 38 million shares exchanged during the session.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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