Vedanta Resources PLC, the holding company of Vedanta Limited, on September 11 priced its $900 million dollar bond issue at a final price guidance of 10.875%. The bond, due in 2029, has an order book of $1.45 billion from investors across the globe representing a 1.6x+ oversubscription, the mining conglomerate said in a statement.
The net proceeds from the offering of the bonds will be used to repay (including by way of tender offers, redemptions, or otherwise) certain of Vedanta’s existing bonds (including any accrued interest thereto) and to pay any related transaction costs in connection thereto, the company said.
Earlier in the week, Moneycontrol exclusively reported that the company has begun discussions with lenders to raise up $1 billion through foreign currency bonds. Billionaire Anil Agarwal-led metals and mining conglomerate plans to refinance up to $600 million of bonds maturing in 2026 and also raise fresh funds towards equity infusion in some of the group’s existing and new businesses, sources told Moneycontrol.
Vedanta Resources has raised over $2 billion in recent months through stake sales in India-listed Vedanta Limited. However, it has shelved plans to sell its steel business for which it was in talks with potential buyers.
In July, Vedanta Limited raised Rs 8,500 crore through a qualified institutional placement (QIP) offering of which the company planned to use Rs 6,375 crore to repay in part or full the debt it owes to Oaktree Capital, Deutsche Bank and Union Bank of India (UBI). As of June 25, the company owed Rs 17,470 crore to Oaktree, Deutsche Bank and UBI.
In its latest annual report, Vedanta said that its UK-based promoter Vedanta Resources, will look to reduce its debt by $3 billion over the next three years. The debt on Vedanta Resources' books stood at $6 billion as of financial year 2024 (FY24).
The offering, which is its first U.S. dollar bond issued since Februarya 2021, is expected to close on September 17, 2024.
"We are delighted by the overwhelming response to our bond issue. This reflects the significant confidence of global investors in the Vedanta growth story and the quality of our assets, our commitment and track record to deleveraging our balance sheet, strengthening our cash position, striving towards greater operational excellence, and consolidating for growth," said Chief Financial Officer Ajay Goel.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
Find the best of Al News in one place, specially curated for you every weekend.
Stay on top of the latest tech trends and biggest startup news.
