By: Billionaires Africa

Mining group Vedanta Resources Ltd., chaired by Indian billionaire Anil Agarwal, is in advanced discussions with a consortium of international banks to secure a $500 million loan. The four-year financing, which could be finalized early next year, is intended to provide the company with financial flexibility as it continues to reduce debt and fund critical operations, particularly at its Konkola Copper Mines in Zambia.

The loan, priced at approximately 425 basis points over the benchmark SOFR rate, would be led by banks including Citigroup, Barclays, Mashreq, Standard Chartered Bank, and Sumitomo Mitsui Banking Corp. According to sources, about $200 million of the proceeds would be used to refinance existing, higher-cost debt, with the remaining $300 million directed towards capital expenditure at the Konkola operations.

To support the deal, lenders are discussing a security structure linked to the brand fees paid by Vedanta’s profitable Indian operating subsidiaries, such as Vedanta Ltd. and Hindustan Zinc. This income stream, which reached $386 million in the last fiscal year, provides lenders with a predictable source of cash flow for repayment. The debt would be issued as unsecured bills of exchange by these subsidiaries and guaranteed by the step-down unit Twin Star Holdings.

The financing talks come as Vedanta has made significant progress in improving its balance sheet. The company’s gross debt has been reduced by more than $4 billion, from $9.1 billion in 2022 to approximately $4.7 billion as of June 2025, through a series of asset sales, refinancings, and equity fundraisings. This restructuring has also pushed out its average bond maturities and lowered overall interest costs.

For Chairman Anil Agarwal, Konkola remains a strategic asset, central to Vedanta's copper ambitions amid rising global demand. The company recently announced plans to invest $1.5 billion to significantly increase output at the Zambian mine by 2031.