Vedanta ties up $6 bn finances for Cairn deal
19 Nov 2010
Anil Agarwal-promoted Vedanta Resources Plc, the London-listed but India-focussed mining conglomerate, has tied-up a $6 billion (Rs27,186 crore) financing deal with a consortium of banks to help fund its proposed acquisition of a majority stake in the Indian unit of Cairn Energy.
Vedanta said in a statement the financing would be structured in four tranches, with maturities of between 18 months and three years.
The bank consortium comprises Barclays Capital, Citibank, Credit Suisse, Goldman Sachs, J P Morgan, Morgan Stanley, Royal Bank of Scotland and Standard Chartered. General syndication will be launched shortly.
Vedanta announced a deal in August to buy a stake of 51-60 per cent in Cairn India for $8.5-9.6 billion (Rs38,513-43,497 crore).
On Tuesday, UK's Cairn Energy said there was no guarantee its planned sale of the stake would proceed, but still hoped to close the deal in the first quarter of 2011.
Cairn Energy has applied for government approval to purchase seven out of the 10 properties held by Cairn India.