Chairman Anil Aggarwal claims that Vedanta is in a better position to control debt.
moneycontrol.com
India
07-02-2024
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The chairman of Vedanta Resources told Moneycontrol in an exclusive interview on the fringes of the second India Energy Week that mining giant Vedanta is in a comfortable position to manage its debt, cushioned by the $1.3 billion loan the company secured along with the dividend and royalties that it will earn.
Vedanta was reportedly in negotiations with Standard Chartered Bank last year for a loan of between $1.2 and $1.3 billion secured by brand fee receivables. Aggarwal did not, however, provide any more information regarding the approved loan.
"We have 5 years, in 5 years we have to pay the entire debt and that should be more comfortable for us what we get a dividend, what we get the royalty should be more than enough for us to clear this," Aggarwal said.
In order to pay back lenders, the corporation is now relying on dividends, royalties, and proceeds from the sale of non-core assets. In FY23, VRL was paid out $2.5 billion in dividends. In FY23, it received $327 million in trademark fees from Hindustan Zinc, Vedanta Ltd., and other subsidiaries.