The loan has a tenor of 15 months and all in cost of 11.5% IRR split into a running coupon of 10.5% per annum payable monthly and a 0.5% upfront fee, according to the term sheet seen by Economic Times.
The loan will have a first exclusive charge over the fixed assets of the Tuticorin plant in Tamil Nadu and an exclusive pledge over Hindustan Zinc shares, providing a 2.2x cover.
The loan will be used for business purposes including repayment of existing debt, capex, and general corporate purposes and to pay transaction related expenses. Rating agencies Crisil and Icra have assigned a AA rating to the issuer.
Both Vedanta and Barclays did not respond to requests for comment.
VRL has been in discussions with credit funds and banks for raising funds. In addition to the loan, Vedanta is in the process of raising Rs 2,100 crore through NCDs. It is also in talks with Farallon Capital Management for a loan of $1.5-2 billion.
