Vedanta postpones bond sale plans during market volatility

22 Nov 2024 , 12:45 PM

Vedanta Resources Ltd., controlled by Indian Billionaire Anil Agarwal, is reconsidering the timing of a potential dollar bond sale after the US indictment of the founder of unrelated conglomerate Adani Group exacerbated market volatility, according to people familiar with the case.

Vedanta, the mining company, conducted fixed-income investor calls on Wednesday to explore a possible debt issuance. However, it is now considering launching the sale as early as next week, if yields stabilise, according to persons who asked not to be identified while discussing private topics. 

The development adds to fears of broader market turmoil, as US authorities indicted Adani Group founder Gautam Adani on Wednesday with involvement in an alleged bribery plan. Adani took the unprecedented action of cancelling a dollar bond sale that had just been priced, its shares and bonds fell, Indian market benchmarks underperformed, and rates on other dollar instruments in the region climbed. 

During instances of market turbulence, borrowers frequently reduce bond issues. Vedanta has previously experienced swings in its own bonds, which were pulled down by falling metals prices, local oil taxes, and concerns about its ability to repay obligations.

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