September 08, 2008

Vedanta hires 7 banks to arrange USD 1 billion for Seas Goa

Bloomberg, citing 4 people involved in the deal, reported that Vedanta Resources Plc has hired seven banks to arrange a USD 1 billion loan to refinance debt taken to fund its purchase of Sesa Goa Ltd.

As per report, ABN Amro Holding NV, Barclays Capital, Bank of Tokyo- Mitsubishi UFJ Ltd., Calyon, Citigroup Inc., Standard Chartered Plc and Sumitomo Mitsui Financial Group Inc have been engaged.

As per report, Vedanta plans to pay interest at 2 percentage points above the LBOR in the first year of the loan, then 3 percentage points above LIBOR.

Vedanta bought a 71% stake in Sesa Goa for USD 1.37 billion last year and had borrowed USD 1.1 billion to fund the acquisition last year at between 50 basis points and 60 basis points above LIBOR. A basis point is 0.01 percentage point.