Mining mogul Anil Agarwal’s Vedanta Resources has raised USD 1.1 billion through a new bond offering to prepay existing liabilities, the company said in a Singapore exchange filing.
Vedanta Resources Finance II plc, a wholly owned subsidiary of Vedanta Resources, raised USD 1.1 billion through a new dual tranche issuance in international debt capital markets.
Vedanta Resources Ltd (VRL) has raised USD 3.1 billion in USD bonds since September 2024.
As per the exchange filing, the latest bond issuance consists of two tranches - a USD 550 million tranche of 5.5 years tenor at a 9.475 per cent interest rate and a USD 550 million tranche of 8.25 years tenor at a 9.850 per cent interest rate.
Both tranches garnered strong investor demand with the bonds receiving final orders of USD 3.4 billion from over 135 accounts, representing an oversubscription of 3.1x, the company said.
“The net proceeds from the offering of the Bonds will be used to prepay Vedanta’s outstanding bonds (including any accrued interest thereto), pay any related transaction costs in connection thereto and to service other debts,” it said. Marquee investors from the United States, EMEA (Europe, the Middle East and Africa) and Asia were amongst the major investors.
Bonds are expected to be rated ‘B’ by S&P Global and ‘B2’ by Moody’s Ratings. Moody’s recently upgraded VRL corporate family rating (CFR) to B1 from B2 on the back of recent moves.
The final bonds allocation included 61 per cent from Asia, 30 per cent from EMEA, and 9 per cent from the US for the 5.5-Year Tranche and 54 per cent from Asia, 30 per cent from EMEA, and 16 per cent from the US for the 8.25-Year Tranche.
