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Vedanta NSE 0.64 % Ltd on Monday said it has tied up with State Bank of India NSE 0.11 % for a long-term syndicated loan facility worth Rs 10,000 crore. A syndicated loan is offered by a group of lenders who work together to provide credit to a large borrower.

"Vedanta Ltd has tied up a long-term syndicated loan facility for Rs 10,000 crore with State Bank of India as facility agent and SBICAP Trustee Company Ltd as the security trustee with door to door tenor of seven years," Hindustan Zinc NSE 3.71 %, a subsidiary of Vedanta, said in a filing to the BSE.

State Bank of India has given a commitment of Rs 5,000 crore as a lender, it said.

The facility end use stipulates refinancing of near-term debt maturities of Vedanta and for capital expenditure of the metals and mining giant, it said.

"This extends maturity profile, improves liquidity ratio and reinforces the commitment of lenders in the growth story of Vedanta Ltd," it said.

Security is provided by way of pledge over the shares held by the company in Hindustan Zinc Ltd, representing 14.82 per cent of the paid-up share capital of HZL which will be released in a phased manner as per the terms of the facility.