Vedanta lines up FY's first rupee debt sale, bankers say

Vedanta, the Indian mining conglomerate, is set to issue its inaugural rupee-denominated bond this fiscal year, according to two merchant bankers who spoke on condition of anonymity. The company aims to raise ₹3,500 crore ($364.75 million) through three-year bonds, with a potential coupon rate of around 8.75 percent. The bankers emphasized that the bonds are currently rated "AA+" by Icra and Crisil, with the coupon rate subject to an increase of 50 basis points if the rating is downgraded to "AA–" and an additional 25 basis points for each subsequent downgrade.

The bonds are expected to be issued within the next three to four days, as Vedanta has already secured commitments from foreign banks and mutual funds. In March, Vedanta had raised a similar amount through three-year bonds at an annual coupon of 8.95 percent.