While people in Goa, Orrissa and other parts of the World are waging relentless struggle against British multinational Vedanta for their environmental crimes some banks in the world including Indian Banks such as Syndicate Bank, Canara Bank, Bank of Baroda, Indian Bank, Bank of Maharastra, Corporation Bank, United Bank of India, Vijaya Bank and State Bank of India - however are happy to finance Vedanta as their business venture. This is list of banks that provided loans provided to this corporate to effect expansion of its business by acquisition of new companies and towrds ruin of Goa's nature through its denounceable mining ventures.
Sonja Willems of Bank Track based in Netherlands makes this information available. Amount figures are in US dollar ($) and Euro (€).
You are requested to establish contacts with the below banks and urge them to dissociate themselves from Vedanta. In Goa Vedanta is involved in massive damage to the environment and people through its mining activities.
1.1 Loans
· In August 2005 Hindustan Zinc secured a US$ 125 million (€ 102 million) loan from a banking syndicate arranged by ABN Amro Bank (now part of Royal Bank of Scotland), Calyon (part of Crédit Agricole) and Standard Chartered Bank. Proceeds were used to refinance a US$ 125 million loan signed in October 2003. The new loan is split in three tranches with maturities of 1.5, 2.5 and 3.5 years.
Nineteen banks participated in the loan. They are listed here, with respective amounts committed to the syndicate:[1]
· ABN Amro part of Royal Bank of Scotland $12.50 million € 10.2 million
· Bank of Taiwan $5.00 million € 4.1 million
· Calyon part of Crédit Agricole $12.50 million € 10.2 million
· Canara Bank $2.00 million € 1.6 million
· Cathay United Bank $6.50 million € 5.3 million
· Chang Hwa Commercial Bank $3.25 million € 2.7 million
· Chiao Tung Bank $3.25 million € 2.7 million
· DBS Bank $10.25 million € 8.4 million
· Export-Import Bank of the Republic of China $4.00 million € 3.3 million
· Hua Nan Commercial Bank $6.50 million € 5.3 million
· International Commercial Bank of China $3.25 million € 2.7 million
· Mascareignes International Bank $3.25 million € 2.7 million
· Mizuho Corporate Bank $10.00 million € 8.2 million
· National Bank of Kuwait $6.50 million € 5.3 million
· Shanghai Commercial Bank $2.00 million € 1.6 million
· Standard Chartered Bank $12.50 million € 10.2 million
· Sumitomo Mitsui Banking Corp $10.00 million € 8.2 million
· Sumitomo Trust & Banking $8.50 million € 6.9 million
· Syndicate Bank $3.25 million € 2.7 million
· In March 2006, Sterlite Industries secured a Japanese Yen loan facility with a total value of US$ 92.6 million (€ 77.1 million) from ICICI Bank, Calyon (part of Crédit Agricole) and Standard Chartered Bank. The facility consisted of two different tranches: a US$ 67.6 million (€ 56.3 million) tranche repayable in June 2007 to repay the June 2004 loan and a US$ 25 million (€ 20.1 million) tranche repayable in September 2008 to repay a US$ 25 million loan secured in September 2003.[2] The estimated contribution of Calyon is:
· Calyon, part of Crédit Agricole US$15 million € 12.5 million
· In April 2007 Vedanta Resources acquired a 51% controlling stake in the Indian iron ore mining company Sesa Goa and made a bid for another 20%. Total investment was US$ 1,370 million (€ 1,015 million). The acquisition was financed in July 2007 by a one-year bridge loan of US$ 1,100 million (€ 815 million) and existing cash resources. The bridge loan was arranged by ABN Amro Bank (now part of Royal Bank of Scotland), Barclays, Citigroup and ICICI Bank.[3]
Fifteen banks participated in the syndicate, which was signed in August 2007. Names and contributions to the loan are as follows: [4]
· ABN Amro, part of Royal Bank of Scotland US$ 75 million € 56 million
· Abu Dhabi Commercial Bank US$ 100 million € 75 million
· Bank of Baroda US$ 75 million € 56 million
· Bank of Tokyo-Mitsubishi UFJ US$ 73 million € 55 million
· Barclays US$ 75 million € 56 million
· BNP Paribas US$ 75 million € 56 million
· Calyon, part of Crédit Agricole US$ 75 million € 56 million
· Citigroup US$ 75 million € 56 million
· DBS Bank US$ 75 million € 56 million
· DZ Bank US$ 25 million € 19 million
· Fortis Bank, now part of BNP Paribas US$ 75 million € 56 million
· ICICI Bank US$ 77 million € 57 million
· Mizuho US$ 75 million € 56 million
· Société Générale US$ 75 million € 56 million
· Sumitomo Mitsui Banking Corp US$ 75 million € 56 million
· In August 2008, Vedanta Resources secured a US$ 1 billion (€ 642 million) five-year loan. The loan is used to refinance the US$ 1.1 billion acquisition loan that Vedanta took out in 2007 to help fund the purchase of a 51% stake in Sesa Goa, India’s biggest private sector iron ore producer. The total banking syndicate consisted of 24 banks, including:[5]
· ABN Amro Bank, now part of RBS US$ 66.8 million € 42.9 million
· Bank of Baroda US$ 66.8 million € 42.9 million
· Bank of East Asia US$ 5.0 million € 3.2 million
· Bank of Tokyo-Mitsubishi UFJ US$ 66.8 million € 42.9 million
· Barclays US$ 66.8 million € 42.9 million
· Bayerische Landesbank US$ 25.0 million € 16.1 million
· Calyon, part of Crédit Agricole US$ 66.8 million € 42.9 million
· Chang Hwa Commercial Bank US$ 15.0 million € 9.6 million
· China Construction Bank US$ 10.0 million € 6.4 million
· Chinatrust Financial Holding US$ 15.0 million € 9.6 million
· Citigroup US$ 66.8 million € 42.9 million
· DBS Bank US$ 25.0 million € 16.1 million
· First Commercial Bank US$ 5.0 million € 3.2 million
· First Gulf Bank US$ 10.0 million € 6.4 million
· Indian Bank US$ 20.0 million € 12.8 million
· Intesa SanPaolo US$ 25.0 million € 16.0 million
· Mizuho Financial Group US$ 66.8 million € 42.9 million
· Natixis US$ 50.0 million € 31.1 million
· Scotiabank-Bank of Nova Scotia US$ 50.0 million € 31.1 million
· Standard Chartered Bank US$ 66.8 million € 42.9 million
· State Bank of India US$ 66.8 million € 42.9 million
· Sumitomo Mitsui Banking Corp US$ 66.8 million € 42.9 million
· Taishin International Bank US$ 10.0 million € 6.4 million
· Westdeutsche Landes Giro US$ 66.8 million € 42.9 million
· In June 2008, Vedanta Resources secured a Rp 10 billion (US$ 234 million) loan . ICICI Bank (India) acted as lead arranger. The banking syndicate consisted of six Indian banks.[6]
· Bank of Maharashtra
· Corporation Bank
· ICICI Bank Ltd
· Indian Bank
· United Bank of India
· Vijaya Bank
· In March 2009, Vedanta Resources acquired copper producer Asarco (United States) for the total amount of US$ 1.7 bilion (€ 1.3 billion). The acquisition is backed by two letters of credit from ABN Amro (now part of Royal Bank of Scotland):[7]
· ABN Amro, part of Royal Bank of Scotland US$ 100 million € 77 million
1.2 Share issuances
· In June 2007, Sterlite Industries issued 150 million new shares (which equals a shareholding of 21.2%) in the form of American Depositary Shares on the American capital market. Sterlite Industries is India’s largest non-ferrous metals and mining group and was 76% owned by Vedanta Resources before. Following the offering Vedanta Resources still owned a majority share and had management control. The offering raised US$ 2,016 million (€ 1,503 million) for the company and was managed and underwritten by:[8]
· Citigroup 12.9 million shares € 129 million
· Merrill Lynch 53.0 million shares € 530 million
· Morgan Stanley 53.0 million shares € 530 million
· Nomura 11.5 million shares € 115 million
1.3 Bond issuances
· In October 2005, Vedanta Resources mandated Deutsche Bank, Merrill Lynch and Morgan Stanley for a US$ 500 to 1,000 million bond issuance. This bond issuance was never realised.[9]
· In January 2006, Vedanta Finance (Jersey) Limited - a financing subsidiary of Vedanta Resources in Jersey - issued 4.6% twenty-year guaranteed convertible bonds with a total value of US$ 725 million (€ 600 million).
The bond issuance was managed and underwritten by Barclays. The issuance was a flop, which means that Barclays was not able to sell the bonds to sufficient investors and was left with a lot of bonds itself.[10] It is not clear if Barclays has been able to sell these bonds since.
· In June 2008, Vedanta Resources issued bonds in two tranches totalling US$ 1.25 billion (€ 803 million). The first tranche consisted of 8.75% five and a half year bonds totalling US$ 500 million (€ 321 million). The second tranche consisted of 9.5% ten-year bonds totalling US$ 750 million (€ 482 million). The proceeds were intended for general corporate purposes. The bonds were sold as a private offering. Five banks acted as joint book runners: [11]
· Barclays US$ 208.3 million € 134 million
· Citigroup US$ 208.3 million € 134 million
· Deutsche Bank US$ 208.3 million € 134 million
· JPMorgan US$ 312.5 million € 201 million
· Morgan Stanley US$ 312.5 million € 201 million
Appendix 1 References
[1] India, Euroweek - Issue: 909, London, 24 June 2005; India, Euroweek - Issue: 914, London, 29 July 2005; Indian companies enjoy their power in loan mart, Euroweek - Supplement India in the Capital Markets, London, 30 September 2005.
[2] India, Euroweek - Issue: 948, London, 7 April 2006; Prospectus, Sterlite Industries, Mumbai, 18 June 2007.
[3] Vedanta invests in Indian iron ore producer, Rebecca Bream, Financial Times, 25 April 2007; Annual Report 2007, Vedanta Resources Plc, London, June 2007; South Asia Syndicated Loans news in brief, Euroweek - Issue: 1014, London, 26 July 2007.
[4] Vedanta raises Sesa Goa bridge, Project Finance, London, 28 August 2007; South Asia Syndicated Loans - news in brief, EuroWeek - Issue: 1019, London, 31 August 2007.
[5] South Asian Syndicated Loans - news in brief, August 29, 2008, Euroweek - Issue: 1069, London, 28 August 2008; South Asian Syndicated Loans - news in brief, June 6, 2008, Euroweek - Issue: 1057, London, 5 June 2008; Tearsheet deal facility number 2357292115, Thomson ONE Banker Database, 22 August 2008.
[6] Tearsheet deal facility number 2381020115, Thomson ONE Banker Database, 25 June 2008; South Asian Syndicated Loans - news in brief, July 4, 2008, Euroweek - Issue: 1061, London, 3 July 2008.
[7] South Asian Syndicated Loans - news in brief, Euroweek - Issue: 1095, London, March 13, 2009.
[8] Vedanta Resources plc announces Sterlite’s plans for US ADR Offering, Press release Vedanta Resources Plc, London, 16 November 2006; Prospectus, Sterlite Industries, Mumbai, 18 June 2007; Sterlite Industries (India) Limited Prices Global ADS Offering, Press release Sterlite Industries, Mumbai, 19 June 2007; Sterlite Raises $1.75 Billion in Top Indian ADR Sale, Debarati Roy, Bloomberg, 19 June 2007; Three jumbo IPOs set remarkable week for Indian equities, Euroweek - Issue: 1009, London, 22 June 2007.
[9] Debt capital markets - Resourceful perp, IFR Asia - Issue No 424, Hong Kong, 8 October 2005; Debt capital markets - Confusion, IFR Asia - Issue No 425, Hong Kong, 15 October 2005; Barclays hits landmine with Vedanta CB, Jasper Moiseiwitsch, IFR Asia - Issue No 438, Hong Kong, 28 January 2006.
[10] Vedanta Resources plc announces the launch of US$ 725 million Convertible Bonds due 2026, Press release Vedanta Resources Plc, London, 23 January 2006; Barclays left holding much of Vedanta CB, Joanne O'Connor, Euroweek - Issue: 938, London, 27 January 2006; Barclays hits landmine with Vedanta CB, Jasper Moiseiwitsch, IFR Asia - Issue No 438, Hong Kong, 28 January 2006.
[11] Pricing Of Bond Offering, Vedanta Resources, London, 26 June 2008; Thomson ONE Database (www.thomsonone.com), Viewed in February 2009.
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