Key Points
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Vedanta negotiates a $500 million loan to refinance debt and fund Zambia copper operations.
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Global banks back the deal with security linked to brand fee income.
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The miner plans major investment at Konkola as copper demand rises worldwide.
People familiar with the talks say Vedanta is in advanced discussions with a group of international banks. The deal could be signed early next year.
The funding would support operations at Konkola Copper Mines, one of Zambia’s largest and most strategic mining assets, while also helping the company refinance existing debt.
Loan Structure and Pricing
The proposed facility is expected to run for four years and amortize over its life. Pricing stands at about 425 basis points above the Secured Overnight Financing Rate, according to the sources, who spoke on condition of anonymity because the talks remain private.
The loan would have a weighted average life of roughly two and a half years. Vedanta plans to use about $200 million to replace higher-cost borrowings. The remaining funds would go toward capital expenditure at Konkola.
Banks Lead Lending Group
Citigroup, Barclays, Mashreq, Standard Chartered Bank and Sumitomo Mitsui Banking Corp. are leading the lending group, the people said.
To support the deal, lenders have discussed a security structure tied to brand fees paid by Vedanta’s Indian operating companies.
Under the proposal, units such as Vedanta Ltd. and Hindustan Zinc would issue unsecured bills of exchange. Twin Star Holdings, a step-down subsidiary, would provide guarantees.
Brand fee income reached $386 million in the year ended March 2025. By June, $379 million had already been recorded, offering lenders a steady and predictable cash flow.
Debt Reduction Gains Momentum
The loan talks come as Vedanta continues to clean up its balance sheet after years of heavy borrowing.
Gross debt has dropped by more than $4 billion, from $9.1 billion in 2022 to about $4.7 billion as of June 2025. The reduction followed asset sales, refinancings and equity fundraisings.
Average bond maturities have stretched to nearly five years from about three. Around $1.2 billion is due over the next 30 months, including roughly $800 million in external obligations.
Copper Expansion at Konkola
Over the past year, Vedanta raised about $2.2 billion through bank loans and rupee-denominated non-convertible debentures. The moves cut interest costs by around 130 basis points.
The company also secured $1 billion through a qualified institutional placement and raised about $400 million from other funding sources.
Last month, Vedanta announced plans to invest $1.5 billion to boost output at Konkola by 2031. The mine remains central to the company’s copper strategy as global demand rises alongside electrification and infrastructure spending.
Broad Portfolio, Growing Revenue
Vedanta operates across India, Africa, the Middle East and Asia. Its businesses span oil and gas, base metals, aluminum, steel, power and glass substrates. The company has also flagged interest in semiconductors and display glass.
For the year ended March 31, 2025, revenue rose 6 percent to $18.2 billion. Earnings before interest, tax, depreciation and amortization climbed 16 percent to $5.5 billion.
For Agarwal, Zambia continues to anchor Vedanta’s push to remain a major global copper producer.
