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Vedanta Resources to issue $400 million Notes to Oaktree Capital Group to meet liquidity needs

Vedanta Resources Ltd. on December 10, sold $1 billion of securities at one of the highest yields for a dollar bond in Asia this year. The mining conglomerate is planning to use the money to finance a buyback offer for $670 million of notes maturing in June 2021.

December 29, 2020 / 03:28 PM IST
Vedanta Resources Limited. (PC-PTI)

Vedanta Resources Limited. (PC-PTI)

In order to meet the liquidity needs, mining conglomerate Vedanta Resources will issue $400 million in notes to an entity under Oaktree Capital Group. All these notes will be partly secured by shares in Mumbai-listed unit Vedanta Ltd.

"A subscription agreement dated December 23, 2020, has been entered into between Vedanta Holdings Mauritius II Limited (Issuer), Finsider International Company Limited (FICL), Vedanta Resources Limited (VRL), Westglobe Limited (Westglobe) and OCM VErde XI Investment Pte. Ltd. (OCM). Under the Subscription Agreement, the Issuer shall issue US $400,000,000 notes of nominal value of US $1 (Notes) in favour of OCM, subject to certain conditions," a unit of Vedanta Resources said in a regulatory filing on December 29.

Vedanta's promoter creates pledge on entire equity, shares fall over 2%

However, certain restrictions on the promoter group entities have been envisaged under the subscription agreement to create any security, or to sell, lease, transfer or dispose of any shares in VEDL held by them and to be acquired by them.

Earlier on December 10, Vedanta Resources Ltd. sold $1 billion of securities at one of the highest yields for a dollar bond in Asia this year. The firm is planning to use the money to finance a buyback offer for $670 million of notes maturing in June 2021.

Close

Credit Suisse Group AG, DBS Bank Ltd., Deutsche Bank AG, Barclays Plc, Citigroup Inc., JPMorgan Chase & Co. and Standard Chartered Plc managed to seal the deal.

The Anil Agarwal-controlled firm failed to delist Indian unit Vedanta Ltd. Following this, concerns triggered on how the VRL will be able to refinance its biggest wall of debt maturities in years.
Saurav Mukherjee

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