INSUBCONTINENT EXCLUSIVE:
Vedanta | (Photo: Reuters)3 min read Last Updated : Sep 11 2024 | 8:05 PM IST
Vedanta Resources, the parent firm of mining conglomerate
Vedanta Ltd, on Wednesday raised $900 million in its first dollar bond issue in more than two years to prepay existing bonds.
In a
statement, the firm said it has raised $900 million at a coupon rate of 10.875 per cent in the five-year US dollar-denominated bond.
"The
net proceeds from the offering of the bonds will be used to repay certain of Vedanta's existing bonds (including any accrued interest
thereto) and to pay any related transaction costs in connection thereto," it said.
This is the first US dollar bond issued by Vedanta
over 1.6 times, reinforcing the confidence of these investors in the Vedanta story, the statement said.
"The final allocation of the bonds
represented the broad-based support which Vedanta enjoys, including 41 per cent from Asia, 24 per cent from EMEA and 35 per cent from the
United States and a subscription by over 102 investors," it added.
The coupon rate of 10.875 per cent will lead to interest reduction
compared to the dollar bond liabilities it would be refinancing, representing an interest saving of 3 per cent per annum.
"Vedanta
Resources Finance II plc, a wholly-owned subsidiary of Vedanta Resources Limited, announced the successful pricing of the offering of bonds
in the aggregate principal amount of $900 million of 10.875 per cent Bonds due 2029 on September 10, 2024," the statement said.
"The Bonds
are guaranteed by the Company and other wholly-owned indirect subsidiaries of the company, namely Twin Star Holdings Ltd and Welter Trading
Limited."The Bonds are being offered and sold in a private offering to qualified institutional buyers
The offering is expected to close on September 17, 2024, subject to customary closing conditions.
Barclays, Citigroup, Deutsche Bank, JP
Morgan and Standard Chartered Bank are acting as joint global coordinators and managers.
"We are delighted by the overwhelming response to
This reflects the significant confidence of global investors in the Vedanta growth story and the quality of our assets, our commitment and
track record to deleveraging our balance sheet, strengthening our cash position, striving towards greater operational excellence, and
consolidating for growth.
"Vedanta is confident of continuing to provide market-leading returns to all our global and domestic investors
in the years ahead," Vedanta said.
Vedanta Resources Finance II Plc is the finance vehicle for the Vedanta Group and a wholly-owned
subsidiary of Vedanta Resources Limited
The Vedanta Group is a globally diversified natural resource group engaged in exploring, extracting and processing minerals and oil and
gas.
It has operations in India, Namibia, Ireland, South Africa, Liberia, UAE, Zambia, Japan, South Korea and Taiwan, and is primarily
engaged in the businesses of aluminium, zinc-lead-silver, oil and gas, copper, iron ore, steel and commercial power generation.(Only the
headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a
syndicated feed.)First Published: Sep 11 2024 | 8:05 PMIST
