Hindustan Zinc Limited disclosed that its related parties, Twin Star Holdings Ltd and Vedanta Resources Limited, entered into a $1 billion facility agreement on July 15, 2026. The agreement, which involves Twin Star Holdings as the borrower and Vedanta Resources as the guarantor, imposes specific restrictions on Hindustan Zinc regarding asset sales and investments. These restrictions become effective from the first utilisation date of the facility, although certain covenants apply immediately upon execution.

The disclosure was made to the stock exchanges on July 18, 2026, under Regulations 30 and 30A of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (LODR). The intimation was received from the promoter group entities of Vedanta Limited, which is the holding company of Hindustan Zinc.

Parties to the Agreement

The facility agreement involves several entities, with specific roles and relationships to Hindustan Zinc. The table below outlines the key parties involved:

Purpose and Terms

The facility agreement was established for purposes including the repayment of financial indebtedness of the Vedanta Resources Limited (VRL) Group, payment of accrued interest, and general corporate purposes. The total commitment under the agreement aggregates $1,000,000,000. The agreement includes standard representations, warranties, covenants, and events of default typical for such transactions.

Impact on Hindustan Zinc

While Hindustan Zinc is not a party to the agreement, it is subject to certain restrictions as a member of the group. These restrictions, categorised as "identified clauses," will become effective from the first utilisation date. They include limitations on creating security over assets, selling or transferring assets outside the ordinary course of business, and making investments in sectors not associated with mining, metals, or energy. Additionally, the agreement restricts mergers and encumbrances on distributions without lender consent.

Other restrictions effective immediately include limitations on Hindustan Zinc entering into material contracts outside the ordinary course of business and on arm's length terms. The company stated that no liabilities have been imposed on it directly, and there is no impact on its management or control. The transaction does not classify as a related party transaction under the LODR for Hindustan Zinc.

Hindustan Zinc Ltd was assigned an ESG rating of 67 by ESG Risk Assessments and Insights Limited (ESGRisk.ai) on July 10, 2026. The rating provides an independent assessment of the company's environmental, social, and governance performance based on publicly available information.

The disclosure was made to the exchanges pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The company clarified that it did not engage ESGRisk.ai for this specific assessment.

The rating was received via email on July 10, 2026, at 4:12 PM. ESGRisk.ai, a SEBI registered ESG rating provider, prepared the ratings and reports independently.

The detailed rating rationale has been made available on the ESGRisk.ai website. The filing was signed by Aashhima V Khanna, Company Secretary & Compliance Officer of Hindustan Zinc Limited.