Vedanta Resources Ltd (VRL), led by mining billionaire Anil Agarwal, is reportedly in talks with Deutsche Bank and other global lenders, including JPMorgan and Barclays, to raise a $50-600 million loan The company was unable to secure funding from Farallon Capital Management to meet its needs. Obligations later this month. The company aims to borrow money through its Zinc International unit.

The 7.125% bond due on May 31 needs to pay back $500 million.

“Vedanta is currently in discussions with Deutsche Bank and other global banks, including JPMorgan and Barclays, to secure a smaller loan than the Farallon loan,” the Economic Times reported, citing people familiar with the matter. “Compared to the interest rates charged by credit funds, bank loans are relatively more cost-effective.”

Lenders will charge the Secured Overnight Financing Rate (SOFR) + 800 basis points. Currently, SOFR is 5.06%.

The company is in discussions with global banks to raise $1 billion. However, VRL has set its sights lower due to high-interest costs. In addition, lenders highlighted the need for guarantees for larger loans from Vedanta Ltd, for which the latter has sought approval from the Reserve Bank of India (RBI).

Additionally, the company is in talks with banks and credit funds to refinance $1.8 billion in debt for the June quarter. It relied on dividends from units to cover a $400 million repayment in April. VRL received about $600 million in dividends from Hindustan Zinc (HZL) last month.

Earlier this week, Vedanta appointed Sonal Shrivastava as its new Chief Financial Officer (CFO). She joins the company on June 1, 2023.

Additionally, the company is in talks with banks and credit funds to refinance $1.8 billion in debt for the June quarter. It relied on dividends from units to cover a $400 million repayment in April. VRL received about $600 million in dividends from Hindustan Zinc (HZL) last month.

Earlier this week, Vedanta appointed Sonal Shrivastava as its new Chief Financial Officer (CFO). She joins the company on June 1, 2023.

According to a regulatory filing, Vedanta reported a 68% drop in fourth-quarter net profit as “one-time charge” at its oil and gas business were dragged down.