Vedanta ltd on Monday said it will issue non-convertible debentures (NCD) worth Rs2,000 crore as the mining conglomerate aims to refinance its debt. In a BSE filing, the Anil Agarwal-led firm said: “Subject to favourable market conditions. In the process of issuing secured, rated, non-cumulative, redeemable NCDs of Rs10 lakh each up to Rs2,000 crore on a private placement basis.” The issuance of NCDs is part of the overall debt refinancing of the company to substitute short-term liabilities and/or to retire higher cost debt, the filing added. The NCDs are proposed to be listed on BSE, it said.
“This issue is part of the overall approval of Rs8,000 crore by the Board and the shareholders at the 50th AGM of the company held on July 11, 2015, permitting issuances in one or more series/tranches on a private placement basis during 12 months,” Vedanta said in the filing. The stock was down 2.24% at Rs104.80 in the afternoon trade on BSE. For the quarter ended June 2015, Vedanta said its gross debt rose Rs1,778 crore to Rs79,530 crore on account of funding project.