Billionaire Anil Agarwal’s debt-strapped Vedanta Group took out a fresh loan for about $850 million, its latest effort to come up with funds.

The Indian mining company inked a five-year deal with JPMorgan Chase & Co. and Oaktree, according to people familiar with the matter, who asked not to be named because the matter is private.

Investors have a close eye on the group’s debt load, as surging interest rates intensify pressure on junk-rated borrowers. The transaction takes place just days before Vedanta Resources Ltd. must pay back a $500 million bond.

With roughly $2 billion of US-currency bonds also coming due in 2024, the group backed by one of India’s richest men is on a quest for cash after its via the sale of a zinc mining unit to Hindustan Zinc Ltd. hit a roadblock.

Investors’ lingering concerns about the finances of Agarwal’s group are reflected in its bond prices.

Bloomberg-compiled data show the Vedanta Resources Ltd. bonds due in August 2024 and April 2026 are trading below 70 cents a dollar, a level that’s generally considered distressed. The May 2023 bond, however, is trading just below par.

London-based parent Vedanta Resources has relied on hefty dividends from its Indian units, with Vedanta Ltd. making 377 billion rupees ($4.6 billion) worth of payouts last fiscal year.

The Mumbai-based subsidiary this week announced its first payout for the new fiscal year in the form of a 68.8 billion rupee dividend.

A spokesperson for Vedanta didn’t comment when contacted by Bloomberg. JPMorgan didn’t respond to an emailed request for comment, while Oaktree declined to comment.

--With assistance from Swansy Afonso, Silas Brown, Denise Wee and Jessica Zhou.

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