London-based Vedanta Resources, the parent of India-based Vedanta Limited listed in the UK, raised $800 million through a new bond. The company partly used the amount for the redemption of debt, out of which some mature in 2028.
Singapore Exchange filing says Vedanta Resources Finance II PLC that the sale has closed. The deal has two tranches: $300m bonds with 10.25% coupon maturing in 2028, and $500m with a 11.25% coupon maturing in 2031.
It was very well subscribed among international investors. More than 90% bids received from asset and fund managers. High participation in Asia Pacific, Europe, the Middle East, Africa (EMEA), and the United States.
Final distribution of 2028 bonds: Asia, 32 percent; EMEA, 36 percent; the United States, 32 percent. The 2031 bonds saw a distribution in the following order: Asia 35%, EMEA 23%, and the US, 42%.
Vedanta Resources said it was satisfied with the investor response, as the issuance marks a step in the company’s continued efforts to optimize its capital structure and reduce financial costs. “This issuance further demonstrates the global investor community’s confidence in Vedanta,” a spokesperson said, noting that the company has refinanced approximately $2 billion in outstanding bonds in recent months.
As part of its broad financial strategy, Vedanta has been deleveraging the balance sheet and looking to get to a much more balanced capital structure. The company has been quite successful in net debt reductions by $1 billion during the first half of the fiscal year and has already refinanced over $1.2 billion worth of bonds during the fiscal year.
It is coming after a $900 million raise in September 2024, the company’s first dollar bond issue in over two years. The September issue was used to prepay existing bonds, and the company later exercised a tap option to raise an additional $300 million.
With these recent moves, Vedanta is working to strengthen its financial position and is committed to delivering long-term value to both global and domestic investors.
