Cairn India’s overseas subsidiary - Cairn India Holdings (CIHL) has decided to extend maturity of the loan of $1.25 billion, which was given for a term of two years in May, 2014, to THL Zinc (TZL), an overseas subsidiary of Vedanta, for a further period of two years.
The extension is on arm’s length at a revised rate of interest of LIBOR + 450 bps in the first year and at LIBOR + 475 bps in the second year (compared to the existing rate of LIBOR + 300 bps) and is on terms that are market standards including change of control provisions and will continue to be secured by a guarantee from Vedanta Resources Plc.
The return from the said loan will provide higher yield to CIHL compared to the return it is earning from its existing investments out of its cash and cash equivalents, which are in US Dollars. TZL is the holding company of the Vedanta Group’s international Zinc business, with assets in South Africa and Namibia.
| Company Name | CMP |
|---|---|
| ONGC | 283.95 |
| Oil India | 470.10 |
| Jindal Drilling&Inds | 540.15 |
| Deep Industries | 476.90 |
| Asian Energy Service | 306.05 |
| View more.. | |
MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.
To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.
MoneyWorks4Me ensures this through: