Vedanta Resources Plc (VED), the oil and metals producer controlled by billionaire Anil Agarwal, hired six banks to arrange a $1.2 billion loan to refinance debt used to buy Cairn India Ltd. (CAIR), according to two people familiar with the matter.
The London-based company hired Bank of America Corp, Barclays Plc (BARC), Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), Royal Bank of Scotland Group Plc (RBS) and Standard Chartered Plc to arrange the five-year, dollar-denominated loan, the people said, asking not to be identified because the terms aren’t set.
Vedanta spokesman Senjam Raj Sekhar said via e-mail the company will respond to queries shortly.
Vedanta bought Cairn India from Edinburgh, Scotland-based Cairn Energy Plc (CNE) and other investors for $8.67 billion in December 2011. That deal helped Vedanta diversify into energy and tap Indian demand, which the U.S. Energy Information Administration estimates will grow 14 percent in the five years to 2015. India’s top court cleared the acquisition May 9.
The company has $16.3 billion of loans and bonds outstanding, according to data compiled by Bloomberg.
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