Vedanta Seals $6B Financing For Cairn India Deal

Vedanta Seals $6B Financing For Cairn India Deal

By Reuters

  • 19 Nov 2010

India-focused mining group Vedanta Resources Plc agreed a $6 billion financing deal with a consortium of banks to help fund its proposed acquisition of a majority stake in the Indian unit of Cairn Energy.

London-listed 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, Citi, 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% in Cairn India for $8.5 billion to $9.6 billion.

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.