Vedanta Secures US $125 Million Loan; Agreement Mandates 50.1% Holding in Hindustan Zinc Ltd
Vedanta Limited has entered into a facility agreement to avail external commercial borrowing of US $125,000,000. The agreement, formalized on April 14, 2026, involves Axis Trustee Services Limited, GIFT City Branch, acting as the agent.The loan arrangement was executed among Vedanta Limited (the Company), JPMorgan Chase Bank N.A., acting through GIFT City Branch (serving as both the mandated lead arranger and bookrunner), and Axis Trustee Services Limited, GIFT City Branch, acting as the agent.
The terms outlined in the facility agreement place specific requirements on Vedanta Limited regarding its holding and control of Hindustan Zinc Ltd (HZL).
According to the agreement, until the full and final settlement of the facility, Vedanta Limited must:
- Directly hold beneficially at least 50.1% of the issued share capital of HZL.
- Directly control HZL.
- Maintain restriction from creating any security over or disposing 50.1% of the entire issued share capital in HZL.
The transaction involved the following key details:
| Detail | Value/Figure |
|---|---|
| Loan Amount | US $125,000,000 |
| Agreement Date | April 14, 2026 |
| Agent | Axis Trustee Services Limited, GIFT City Branch |
| Required Beneficiary Holding in HZL | At least 50.1% |
| Total Issued Share Capital of HZL | 8,450,638,000 (4,225,319,000 equity shares of INR 2 each) |
This covenant requiring the Company to maintain a minimum 50.1% beneficial holding and direct control over HZL is based on the terms set out in the Facility Agreement.
The core arrangement was facilitated between the Company, JPMorgan Chase Bank N.A. acting through GIFT City Branch, and Axis Trustee Services Limited, GIFT City Branch, with Axis Trustee Services Limited appointed as the agent.
HINDZINC Stock Price Movement
As of 10:32 AM, shares of Hindustan Zinc Limited are shedding 0.60% in live trading, currently at ₹588.95. The metal stock has seen robust activity today, with a total traded volume of 1.22 million shares.Source:
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