Mining and metals conglomerate Vedanta Resources has announced that it has fully repaid $800 million worth of loans to Standard Chartered. The loans were taken out by the company in 2014 to finance its acquisition of oil and gas assets in India.
Vedanta’s Chairman, Anil Agarwal, said in a statement that the early repayment of the loans was a sign of the company’s strong financial position and its commitment to reducing its debt. He also thanked Standard Chartered for its support during the company’s acquisition process.
Standard Chartered had initially provided Vedanta with a $1 billion loan to finance its acquisition of Cairn India Ltd’s oil and gas assets in Rajasthan in 2014. The loan was later increased to $1.25 billion, with $800 million of it being drawn down.
Vedanta’s acquisition of Cairn India’s oil and gas assets was a major step in the company’s diversification strategy. The acquisition gave the company access to some of India’s most promising oil and gas fields, and helped it to establish a strong presence in the country’s energy sector.
However, the acquisition also added to Vedanta’s debt burden, which has been a concern for investors. The company has been working to reduce its debt in recent years, and the early repayment of the Standard Chartered loans is seen as a positive step in this direction.
Vedanta’s shares rose by 2% following the announcement of the loan repayment, reflecting investor optimism about the company’s financial position. The company’s management has said that it remains committed to reducing its debt further, and that it is exploring various options to achieve this, including asset sales and refinancing.
The early repayment of the loans to Standard Chartered is seen as a positive development for both Vedanta and the bank. For Vedanta, it represents a significant step in its efforts to reduce its debt burden and improve its financial position. For Standard Chartered, it is a sign of the bank’s continued ability to support its clients and manage risk in challenging economic conditions.
