Two funds backed by Oaktree Capital subscribed to the non-convertible debentures maturing on March 27, 2025. Vedanta has offered a 12% upfront cash coupon and will also pay an ‘arrangement coupon,’ documents show. It does not disclose the details about the arrangement coupon. Oaktree-backed OCM India Opportunities XI Alternate Investment Fund subscribed to ₹1,696.4 crore, while OCM India Opportunities XB Alternate Investment Fund subscribed to ₹803.6 crore bonds, per the documents.
For raising ₹2,500 crore bonds, the company pledged shares it holds in Sesa Iron and Steel, and signed a ‘non-disposal arrangement’ over shares held in ESL Steel, according to stock exchange disclosures. Oaktree declined to comment. Vedanta Ltd raised funds for its capex requirement and also to repay its existing term loans due this financial year, as reported by ET on September 17. The company has two separate term loans of ₹300 crore and ₹1,000 crore due November 14, 2023 and March 31, 2024, respectively.
Vedanta announced the allotment of ₹2,500 crore secured non-convertible debentures on September 28, without disclosing the investor or the terms of the bonds.
In the past, Oaktree has funded the mines-to-metal conglomerate owned by Anil Agarwal.
It had provided $750 million to Vedanta Resources against the share pledge of Vedanta Ltd in December 2020. It also provided $850 million along with JP Morgan to THL Zinc Ventures, a wholly owned subsidiary of Vedanta Ltd, in May 2023.
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