Vedanta directors meet December 19 to review proposal to issue NCDs

Further, it will exchange most of the August 2024 and March 2025 bonds with new amortising bonds maturing in December 2028.

Vedanta Ltd will hold a meeting on December 19 to consider the proposal for issuing non-convertible debentures (NCDs) on a private placement basis.

The announcement comes with Vedanta Resources Ltd (VRL) — the UK-headquartered parent company of Vedanta group — saying that it secured a $1.25 billion loan from private credit lenders to refinance/repay part of the $3.2 billion debt maturing in 2024 and 2025.

"The company proposes to hold a meeting of its duly constituted Committee of Directors on Tuesday, December 19, 2023 to consider the proposal for issuance of NCDs on a private placement basis," Vedanta said in a filing to BSE.

Vedanta Resources said the fundraise would help "create a long-term sustainable capital structure" and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business. As part of the exercise, the company intends to address the three bond maturities using a mix of cash and new bonds.

It would exchange about half of the January 2024 bond with new bonds maturing in January 2027. It would exchange most of the August 2024 and March 2025 bonds with new amortising bonds maturing in December 2028.

(With agency inputs)