Oaktree Capital provides ₹3,400cr debt facilities to Vedanta for 18 months
Oaktree Capital on Thursday provided ₹3,400 crore debt facilities to Vedanta Ltd for a term of 18 months at 12%, said people with knowledge of the matter.
India-listed Vedanta has raised funds around the time its holding company is working round the clock to arrange funds to refinance its upcoming $1-billion bonds, which are due January 2024.
Three different funds of Oaktree Capital provided debt to Vedanta Ltd by subscribing to the secured, unlisted non-convertible debentures (NCD).
Oaktree has stipulated that Vedanta would have to pay 17% interest on the debt in the event of a default, the people said. The proceeds will be used for general corporate purposes.
Vedanta has pledged 100% of shares of Sesa Iron and Steel Ltd as security for debt availed from Oaktree.
Oaktree declined to comment.
Vedanta did not respond to ET's request for comment.
Vedanta, a metals-to-mining conglomerate founded by Anil Agarwal, has proposed splitting its business into five units — aluminium, oil & gas, base metals, steel and ferrous and power generation.
OCM India Opportunities XII Alternate investment Fund provided ₹2,487 crore, OCM India Opportunities XB Alternate investment Fund ₹293 crore, and OCM India Opportunities XI Alternate investment Fund ₹619 crore. Oaktree Capital operates all the three funds.
This is the second investment by Oaktree in Vedanta within 3 three months.
