Vedanta Resources hires boutique financial advisor to locate bondholders

25 Aug 2023 , 11:31 AM

To locate the investors of approximately $3.2 billion in bonds that are due for repayment in the next two years, Vedanta Resources (VRL) has hired boutique financial advisor Morrow Sodali.

The group that recently sold a portion of its share in the locally listed firm may be under pressure to make repayments because a tranche of $1 billion with a coupon of 13.875% is due in January and the remaining after that.

Morrow Sodali ordered holders of its $1 billion 13.875% due-2024 bonds, $1 billion 6.125% due-2024 bonds, and $ 1.2 billion 8.95% due-2025 bonds to reveal their identities and ownership of the three USD notes by September 6 in an email issued on August 23. The noteholders must send this information to the appropriate clearing systems via email or through their respective custodian banks, as instructed in an email.

Following this, bonds dropped a few points on Thursday, with the price of the $1 billion 13.875% bond due in 2024 falling from 91 to 88 and the price of the $1 billion 6.125% bond due in 2024 dropping from 69.50 to 67. There were 69 bids on the $1.2 billion 8.95% bond due in 2025. 

The lead banks of Vedanta have been talking to investors about a potential exchange offer. In order to meet its finance needs of around $6 billion over the next two fiscal years, Vedanta may want to explore extending its outstanding US dollar bonds, according to a recent suggestion from Standard Chartered Bank. Between July 2023 and March 2024, the corporation will need to raise $1.3 billion in capital, and then $4.3 billion in FY25.

For feedback and suggestions, write to us at [e-mail]