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Vedanta is Rumoured to be Planning a Partial Cash Payment in an Effort to Extend Bonds

Vedanta Resources, the mining company led by Indian tycoon Anil Agarwal, is reportedly considering a restructuring plan for its dollar bonds maturing in 2024 and 2025. According to sources familiar with the matter, the proposed plan involves repaying a portion of the principal on these bonds in cash while deferring the remainder for three years from the original due date.

The restructuring plan, discussed in meetings with international investors in Asia and London, would involve repaying about half of the principal on the January 2024 bond and a smaller proportion of the March 2025 debt. It’s unclear whether a similar approach will be taken with the August 2024 bond, which was issued through a different entity.

It’s worth noting that the terms of the proposal could still change, and there is some opposition from investors. Vedanta Resources, however, expressed confidence in its discussions with bondholders and its ability to secure support for the proposed exercise.

Vedanta Resources is facing the challenge of repaying approximately $3 billion in US-dollar-denominated bonds over the next two years, prompting the company to seek solutions to bolster its cash position. One such measure involves subsidiary Vedanta Ltd. spinning off businesses into multiple listed entities, a move aimed at improving the company’s financial outlook.

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