Anil Agarwal-led Vedanta Resources Ltd (VRL) has raised 500 million dollars through bonds in October and will use the proceeds to repay near-term obligations.
As per the letter to the bondholders, the company stated that "the average maturity of its debt portfolio is now over four years, and it has reduced its weighted average interest cost to single digits, reflecting a stronger, more resilient capital structure".
The company said that it has completed "a 500 million dollar bond issuance, using proceeds to repay near-term obligations, including a 550 million dollar Private Credit Facility (PCF), in line with its deleveraging roadmap." With this, the Group now has no material maturities until FY27, ensuring a well-balanced liability structure, it said.
The Group maintains robust liquidity, supported by dividend inflows from operating subsidiaries and healthy free cash generation, the company added.
The company has tied up a 500 million dollar term loan facility with a consortium of leading global and Indian banks. It maintains a long-term loan facility with undrawn balances of 682 million dollars. Dividend inflows from operating subsidiaries and healthy free cash generation further support robust liquidity, Vedanta Resources said.
Operationally, Vedanta's core businesses of zinc, oil and gas, aluminium and power continue to deliver strong EBITDA and cash flows.
Commodity prices, the company noted, have remained resilient despite global trade disruptions, supporting profitability.
The ongoing demerger of Vedanta Limited into five independent sector-specific entities is progressing as planned, with the aim of unlocking value, enhancing transparency, and enabling sharper capital allocation, Vedanta Resources said.
The company reaffirmed its commitment to financial discipline, stating that it will continue to honour all debt obligations and sustain its deleveraging trajectory through internal accruals, strategic refinancing, and capital optimisation.
"Your continued trust and support have been instrumental in enabling these results," Vedanta said in the letter, emphasising its focus on disciplined capital management and long-term value creation.
Vedanta Resources has reduced its debt by more than 4 billion dollars since FY22, with total gross debt falling from 9.1 billion dollars in fiscal 2022 to 4.8 billion dollars as of June 2025.
The company has also focused on consolidating its debt, which has helped in creating a robust capital structure, providing it with strong access to capital markets across the group and longer tenor issuances.
As a part of this, it has diversified its credit profile through a mix of bonds and bank loans, while adding new banks to its capital structure.
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