Latest News | Vedanta Resources Raises USD 800 Mn from Global Investors Via New Bond Issue

New Delhi, Nov 26 (PTI) UK-based Vedanta Resources, the parent of India's Vedanta, has raised USD 800 million from global investors through a new bond issue.

The proceeds will be used to prepay the company's outstanding debt due in 2028.

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Vedanta Resources Finance II PLC (VRF) said in a Singapore exchange filing that it has raised USD 800 million by issuing new bonds.

The issue comprises two tranches of bonds -- one with an aggregate principal amount of USD 300 million of 10.25 per cent bonds due in 2028 and the other involving an aggregate principal amount of USD 500 million of 11.25 per cent bonds due in 2031.

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The bids were received from existing as well as new set of investors across Asia Pacific, Europe, the Middle East and Africa (EMEA), and the US with more than 90 per cent participation from asset/fund managers across both tranches.

As per VRF's stock exchange notification, the final allocation of the bonds includes 32 per cent from Asia, 36 per cent from EMEA, and 32 per cent from US for the bonds due in 2028.

For the bonds due in 2031, the allocation includes 35 per cent from Asia, 23 per cent from EMEA, and 42 per cent from the US.

"We are delighted by the tremendous response to Vedanta's USD 800 million bond issuance. With this, Vedanta has successfully refinanced USD 2 billion worth of outstanding bonds in the past few months. The huge confidence and trust of the global investor community in Vedanta is reflected in the significant geographical spread and marquee names who have participated in these issuances.

"Our commitment towards attaining a balanced capital structure through deleveraging our balance sheet remains our top priority. We have also achieved optimisation of costs on the entire 2 billion dollar... We are confident of continuing to deliver substantial value to our global and domestic investors in the years ahead, and we will continue to evaluate all financing options going forward," Vedanta Resources spokesperson said.

This new issue comes as Vedanta has been gradually deleveraging its balance sheet, improving its capital structure, and lowering its financial costs by tapping bond markets as part of its liquidity management exercise.

Vedanta Resources has reduced its net debt by USD 1 billion in the first half and refinanced bonds of over USD 1.2 billion in the current fiscal year.

In September, Vedanta raised USD 900 million, the company's first dollar bond issue in more than two years, to prepay existing bonds.

The USD 900-million raise was at a coupon rate of 10.875 per cent in a five-year US dollar-denominated bond. Following this, VRF exercised a tap option on its September bond issuance, raising a further USD 300 million.

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