Vedanta Issues Corporate Guarantee of ₹1,725 Crore for Subsidiary FACOR's Loan

Mumbai: Vedanta Limited, the diversified natural resources major, announced today that its Committee of Directors has approved the issuance of a corporate guarantee worth ₹1,725 crore on behalf of its subsidiary, Ferro Alloys Corporation Limited (FACOR).

The guarantee will be provided in favor of project lenders to secure a rupee term loan facility of up to ₹1,725 crore, to be availed by FACOR. The guarantee facility will be valid from February 2026 to March 2029.

Key Details of the Transaction:

• Beneficiary: Ferro Alloys Corporation Limited (FACOR), a subsidiary of Vedanta.

• Guarantee Amount: ₹1,725 Crore.

• Purpose: To secure a term loan for FACOR.

• Tenure: Approximately 3 years (Feb 2026 – Mar 2029).

• Nature: Arm's length transaction; no interest held by the promoter/promoter group.

Impact on Vedanta Limited

The issuance of this corporate guarantee creates a contingent liability for Vedanta Limited. This means Vedanta will be obligated to repay the loan in the event FACOR defaults on its payments to the lenders.

The approval was granted in a meeting of the Committee of Directors held on Saturday, January 17, 2026, which commenced at 2:30 PM and concluded at 3:35 PM IST.

The company stated that the transaction is on an arm's length basis and that the promoter group has no interest in it, adhering to standard corporate governance norms.