Vedanta Parent Eye $1B Debt Refinancing

3 Jan 2025 , 12:45 PM

According to news reports, Vedanta Resources, the parent company of the Indian metals giant Vedanta, domiciled in London, intends to raise up to $1 billion in order to restructure and prepay high-yield debt.

The $400 million, 13.875% yield bonds due in 2028 and the $600 million, 9.25% non-guaranteed bonds due in 2026 are two of the refinancing targets.

During a recent earnings call, a corporate executive stated, “The market will be far better mid-January and with that, we will wait and watch the market and look for both $460 million and $600 million – the unsecured maturity – to be addressed sometime in January.”

The company wants to improve its credit rating and reduce its finance costs to single digits.
After Vedanta raised $800 million in two tranches at 10.25% and 11.25% in November, the possible fresh issue follows. The money raised from that sale was also used to pay off previous debt.

In order to pay its debts, Vedanta, which is owned by billionaire Anil Agarwal, has been depending on dividends from its operational companies. The corporation intends to raise its credit rating by taking aggressive measures to meet its impending maturities.

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