Billionaire Anil Agarwal’s Vedanta Resources Ltd. has raised $850 million loan from JP Morgan and Oaktree, according to people familiar with the matter. The individuals requested anonymity as the details of the transaction are considered private.

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The loan, with a tenor of 5 years, is expected to provide Vedanta with crucial financial support as it addresses its debt obligations and strengthens its financial position. The company aims to utilise this raised capital to address its imminent debt repayment obligations, alleviating its debt burden. The exact terms and conditions of the loan agreement, including interest rates and repayment schedules, have not been disclosed.

The $500 million junk-rated bonds issued by the Vedanta group are scheduled to mature by the end of this month. With the recent capital infusion, Vedanta will be better positioned to meet its payment obligations and manage its debt effectively. The funds raised through the loan will provide significant relief in fulfilling the impending bond payments.

Also Read: Vedanta declares 1st interim dividend for FY24: How it compares with previous 6 financial years

In a strategic move, Vedanta has also announced the declaration of its first interim dividend for the current financial year. The company has declared a dividend of Rs 18.5 per share, amounting to a total distribution of Rs 6,877 crore to its esteemed investors.

As Vedanta Resources holds a 68 percent stake in Vedanta Limited, the parent company is set to receive a dividend of Rs 4,683 crore, which is equivalent to the value of the bonds maturing this month.

A spokesperson for Vedanta declined to provide any information or further details regarding the loan deal. Representatives from JPMorgan and Oaktree chose not to comment on the matter, according to news agency Bloomberg which reached out to them.

Also Read: Vedanta Resources repays $800 million loans to StanChart

(Edited by : Anushka Sharma)