Vedanta Resources prices $900 million bond issue at 10.875% with $1.45 bn order book

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.