Vedanta Resources raises $400 million via bond tap issue
Vedanta Resources has secured an additional $400 million from a recent bond issuance. This new funding brings the company's total raised through these instruments to $2.15 billion. The company aims to replace existing debt with these new, lower-cost securities. These bonds will help reduce the company's overall borrowing expenses significantly. The refinancing effort also extends the maturity of…
Mumbai-based Vedanta Resources has successfully raised $400 million through a follow-on bond issue, as reported by the source. This move brings the total amount raised through similar bonds to $2.15 billion. Vedanta had previously raised $1.75 billion in June through a three-tranche issuance of dollar bonds, aiming to retire high-cost debt of approximately $2 billion.
The newly issued bonds mature in 2032, 2034, and 2037, with interest rates of 7%, 7.37%, and 7.75% respectively, closely aligning with the rates of the June-issued bonds according to sources familiar with the matter. These new bonds are also used to refinance existing ones, effectively reducing costs and extending the bond tenures.
The bonds being replaced were initially taken at higher costs ranging between 9.20% to 9.50%, and had shorter tenures of 2030, 2032, and 2033. This refinancing strategy addresses both cost and duration concerns. However, the source could not determine the precise allocation of the $400 million across different bond tenures. A spokesperson for Vedanta did not provide a comment on the matter.
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