Vedanta Resources raises USD 800 mn from global investors via new bond issue

UK-based Vedanta Resources, the genitor of India's Vedanta, has raised USD 800 cardinal from planetary investors done a caller enslaved issue.

The proceeds volition beryllium utilized to prepay the company's outstanding indebtedness owed successful 2028.

Vedanta Resources Finance II PLC (VRF) said successful a Singapore speech filing that it has raised USD 800 cardinal by issuing caller bonds.

The contented comprises 2 tranches of bonds -- 1 with an aggregate main magnitude of USD 300 cardinal of 10.25 per cent bonds owed successful 2028 and the different involving an aggregate main magnitude of USD 500 cardinal of 11.25 per cent bonds owed successful 2031.

The bids were received from existing arsenic good arsenic caller acceptable of investors crossed Asia Pacific, Europe, the Middle East and Africa (EMEA), and the US with much than 90 per cent information from asset/fund managers crossed some tranches.

As per VRF's banal speech notification, the last allocation of the bonds includes 32 per cent from Asia, 36 per cent from EMEA, and 32 per cent from US for the bonds owed successful 2028.

For the bonds owed successful 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 effect to Vedanta's USD 800 cardinal enslaved issuance. With this, Vedanta has successfully refinanced USD 2 cardinal worthy of outstanding bonds successful the past fewer months. The immense assurance and spot of the planetary capitalist assemblage successful Vedanta is reflected successful the important geographical dispersed and marquee names who person participated successful these issuances.

"Our committedness towards attaining a balanced superior operation done deleveraging our equilibrium expanse remains our apical priority. We person besides achieved optimisation of costs connected the full 2 cardinal dollar... We are assured of continuing to present important worth to our planetary and home investors successful the years ahead, and we volition proceed to measure each financing options going forward," Vedanta Resources spokesperson said.

This caller contented comes arsenic Vedanta has been gradually deleveraging its equilibrium sheet, improving its superior structure, and lowering its fiscal costs by tapping enslaved markets arsenic portion of its liquidity absorption exercise.

Vedanta Resources has reduced its nett indebtedness by USD 1 cardinal successful the archetypal fractional and refinanced bonds of implicit USD 1.2 cardinal successful the existent fiscal year.

In September, Vedanta raised USD 900 million, the company's archetypal dollar enslaved contented successful much than 2 years, to prepay existing bonds.

The USD 900-million rise was astatine a coupon complaint of 10.875 per cent successful a five-year US dollar-denominated bond.