Vedanta raises $900 million via bonds at 10.875%

Vedanta Resources Finance II Plc sold the instruments, due now for redemption in 2029, that will carry the guarantee of Vedanta Ltd and its subsidiaries Twin Star Holdings and Welter Trading,

The offering saw good response by global investors, drawing $1.45 billion in orders, which saw an oversubscription of over 1.6x. Final allocation of the bonds saw broad-based support from global investors, with 41% of orders coming from Asia, 24% from the EMEA region, and 35% from the US, with participation from over 102 investors.

ETMarkets.com

“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 toward greater operational excellence, and consolidating for growth,” the company said in a statement.It promised investors ‘market-leading returns’ in the future.

This is Vedanta’s first US dollar bond issuance since February 2021, when it had raised over $1 billion at 13.875%.

The pricing of the bond is an improvement for Vedanta, as the company achieves a 3% annual interest saving compared to the liabilities being refinanced, said Vedanta in a release. This will help Vedanta in reducing debt as it manages its ongoing debt obligations.

The bonds are being offered under Rule 144A to qualified institutional buyers and under Regulation S for non-US investors.