By Shilpy Sinha
Copyright indiatimes
AgenciesMultiple debt layers to fold into a single rate structure, lowering costs
MUMBAI: Vedanta Resources (VRL), the London-based parent of Mumbai-listed resources company Vedanta, plans to raise $500 million through seven-year dollar bonds to refinance a costly private credit facility, further paring debt and simplifying its capital structure.The senior notes, issued via Vedanta Resources Finance II, will be guaranteed by parent VRL and subsidiaries including Twin Star Holdings, Welter Trading, and Vedanta Holdings Mauritius II. The deal, launched under Rule 144A/Reg S, is expected to be priced as early as September 30 with preliminary ratings of B2 (Moody’s) and B+ (Fitch), and will mature in October 2032.Citigroup, Barclays, JPMorgan, Mashreq, SMBC, and Standard Chartered are among joint global coordinators and lead managers.A Vedanta spokesperson confirmed that they are in the market to increase their average debt maturity profile and decrease our interest costs.Proceeds, along with bank loans, will repay the private credit facility raised in December 2023 and due April 2026. That facility, backed by Twin Star and secured against Vedanta’s brand fees, originally funded liability management of three offshore bonds. Once cleared, all lenders will rank pari passu, reducing multiple layers of debt into a single structure.Live EventsLenders on the call said that with this transaction, the group will clear out high-cost debt, fold multiple layers into a single structure, and move closer to completing the capital restructuring drive it began a few years ago.VRL has sharply cut gross debt by over $4 billion, from $9.1 billion in 2022 to $4.7 billion by June 2025, aided by refinancing, asset sales, and equity raises. The company has extended its average bond maturity from about three years to nearly five years, leaving only $1.2 billion due over the next 30 months, of which $0.8 billion is external debt, the company told bond investors today.Repayment of high-cost facilities and refinancing of the external debt are expected to lower interest costs and simplify the capital structure, with all lenders now pari passu. Over the last year, VRL has diversified its funding sources, raising $2.2 billion through new bank loans and rupee denominated non-convertible debentures in 2025, which cut interest expenses by 130 basis points. In addition to this, it has deleveraged by raising $1 billion QIP and another $400 million through other sources.Add as a Reliable and Trusted News Source Add Now!
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