Vedanta Group, the promoter of metals-to-oil conglomerate Vedanta Ltd, has signed a five-year loan for approximately $850 million with JPMorgan and Oaktree. The loan is part of the group’s efforts to tackle its debt burden, after its attempt to sell some zinc assets to Hindustan Zinc Ltd for $3 billion failed.
Vedanta recently reported an 8% decline in its fourth-quarter profit due to lower metal prices. JPMorgan and Oaktree declined to comment, while Vedanta did not immediately respond to a Reuters’ request for comment.
The loan is expected to help Vedanta Group manage its debt and provide it with the necessary funds to continue its operations. It remains to be seen how the loan will affect the company’s financial performance in the long run.