Vedanta Resources Raises $800mn From Global Investors Via New Bond Issue

Vedanta Resources Finance II PLC (VRF) has successfully raised USD 800 million through a new bond issuance, continuing its strategy of reducing debt and improving its capital structure. The issuance, which consists of two tranches, is part of the company’s broader financial management strategy aimed at refinancing its existing debt and optimizing costs. The bond issue has garnered substantial investor interest, reflecting confidence in Vedanta’s long-term financial stability.

Vedanta Raises USD 800 Million Through New Bond Issuance

In a recent filing with the Singapore Exchange, Vedanta Resources Finance II PLC (VRF) announced the successful raising of USD 800 million through the issuance of new bonds. The bond issuance consists of two tranches: USD 300 million in bonds due in 2028 with a 10.25% coupon rate, and USD 500 million in bonds due in 2031 with an 11.25% coupon rate. The bonds were offered to both existing and new investors from a diverse range of regions, including Asia Pacific, Europe, the Middle East, Africa (EMEA), and the United States.

Strong Global Investor Participation

The bond issuance garnered significant investor interest, with more than 90% of the bids coming from asset and fund managers. The final bond allocation saw a diverse geographical spread. For the 2028 bonds, 32% were allocated to Asia, 36% to EMEA, and 32% to the US. Meanwhile, for the 2031 bonds, the allocation was split with 35% from Asia, 23% from EMEA, and 42% from the US. This broad international participation underscores the strong investor confidence in Vedanta’s financial outlook.

Successful Debt Refinancing and Continued Deleveraging Efforts

Vedanta has been actively working on deleveraging its balance sheet and reducing its financial costs. This bond issuance is part of the company’s broader liquidity management strategy, having already reduced its net debt by USD 1 billion in the first half of the fiscal year. Additionally, the company refinanced over USD 1.2 billion worth of bonds in the current fiscal year alone. Notably, this bond issuance follows a USD 900 million raise in September, marking Vedanta’s first dollar bond issue in over two years.

A Vedanta spokesperson highlighted the company’s commitment to improving its capital structure and further optimizing costs. The company has expressed confidence that these efforts will create substantial value for both its global and domestic investors in the years ahead.

Conclusion: Vedanta’s successful USD 800 million bond issuance marks another key milestone in its ongoing efforts to strengthen its financial position and manage liquidity. With significant global investor interest and a clear focus on deleveraging, the company is poised for continued financial stability and growth.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions