Vedanta Power Limited Facility Agreement Details: US$ 2.25 Billion Commitment Secured

Vedanta Power Limited Facility Agreement Details: US$ 2.25 Billion Commitment Secured​

Vedanta Power Limited, formerly known as Talwandi Sabo Power Limited, has provided details regarding a major Facility Agreement entered into by promoter group entities. The agreement pertains to a facility commitment totaling up to US$ 2.25 billion, structured with multiple international lenders and arrangers.

The facility is related to the needs of members of the Group listed in India, including Vedanta Power Limited (VPL). While VPL is not a direct party to the Facility Agreement dated July 20, 2026, certain identified clauses within the agreement are applicable to VPL starting from the first Utilisation Date.

The parties that entered into the Facility Agreement include entities related to the promoter group of VPL, such as Twin Star Holdings Ltd., Vedanta Resources Limited (VRL), Vedanta Holdings Mauritius II Limited, and Welter Trading Limited. The facility is supported by a broad list of international financiers and arrangers, including Standard Chartered Bank, Barclays Bank PLC, J.P. Morgan Securities (Asia Pacific) Limited, Citibank N.A., Hong Kong Branch, and Sumitomo Mitsui Banking Corporation Singapore Branch.

Facility Agreement Financial Structure​

The financial details of the agreement are summarized below:

Role of Parties and Restrictions​

The facility is backed by various financial institutions. The original lenders include Citibank N.A., Hong Kong Branch; Standard Chartered Bank; Barclays Bank PLC; DB International (Asia) Limited; First Abu Dhabi Bank PJSC (and its Gift City Branch); J.P. Morgan Chase Bank, N.A., London Branch; Mashreq Bank PSC; and Standard Chartered Bank (Mauritius) Limited. The arrangers include Citigroup Global Markets Asia Limited and Sumitomo Mitsui Banking Corporation Singapore Branch.

The agreement includes standard representations, warranties, and covenants designed to protect the Lenders. While no liabilities have been imposed directly upon VPL, specific restrictions apply to the Borrower and Guarantors, who are members of the promoter group of VPL.

These restrictions include designated "identified clauses" that become effective from the first Utilisation Date, such as limits on asset sales or acquisitions by VPL if it becomes a Material Subsidiary of VRL. Other pre-existing commitments require VPL to refrain from entering into any material contract or arrangement that is not in the ordinary course of business and conducted on arm's length terms.

The transaction was noted by management as having no direct impact on the control or management structure of VPL, though encumbrances have been created over shares of VPL in accordance with the Facility Agreement.

VEDPOWER Stock Price Movement​

Shares of Vedanta Power Limited slipped in post-market trading today, closing at ₹34.65 after shedding 1.92%. This continued decline saw the stock reach its 52-week low, as nearly 20.8 million shares were traded during the session.