Vedanta is very close to securing a $1.25 billion private financing

 Vedanta is very close to securing a $1.25 billion private financing

According to people who are acquainted with the matter who asked not to be identified as because the significance is private, the Indian conglomerate is getting close to closing a deal after weeks of talks with lenders, including Cerberus Capital Management LP, Davidson Kempner Capital Management LP, Varde Partners Inc., along with Ares SSG Capital Management Ltd.

The miner owned by Indian billionaire Anil Agarwal has been searching for new funding sources in order to refinance around $3 billion in US currency bonds that are due in the next two years.

In an effort to reduce its debt, Vedanta Group is in advanced discussions to secure a $1.25 billion private loan at an interest rate ranging from 18 to 20 percent.

According to people with knowledge of the matter who asked not to be known as because the matter is private, the Indian conglomerate is getting close to closing a deal after weeks regarding talks with lenders, including Cerberus Capital Management LP, Davidson Kempner Capital Management LP, Varde Partners Inc., as well Ares SSG Capital Management Ltd.

The miner owned by Indian billionaire Anil Agarwal has been searching for new funding sources in order to refinance around $3 billion in US currency bonds that are due in the next two years.

On September 21, Bloomberg published the first information on the company's discussions for a $1 billion private loan. Vedanta representatives also suggested postponing the dollar bond payments, a move that was rejected by investors, Bloomberg reported on September 28.

Despite the separation strategy, Vedanta's $3 billion debt remains the focus.

Bloomberg was informed on November 4 by a representative of Vedanta that the company is still working on refinancing maturing debt.

The firm is still confident in its capacity to implement a successful procedure, but at this point, no comments on the exercise's result can be made, according to the spokeswoman.

Due in part to regulations that restrict bank financing for deals like mergers and acquisitions, India has a thriving market for private finance. Interest rates on deals are often variable, and prices are fixed up advance.