Vedanta raises $1.1 billion through bond issue

The final bond allocation saw a diverse geographical spread, with the 9.475 per cent tranche seeing 61 per cent allocation to Asian investors, 30 per cent to EMEA investors and 9 per cent to US investors, while the 9.850 per cent tranche saw 54 per cent allocation to Asian investors, 30 per cent to EMEA investors and 16 per cent to US investors.

Vedanta said this bond transaction is part of the company’s financial strategy to extend maturities, reduce financing costs, deleverage and optimize its balance sheet. The current issuances, alongside the recently announced $350 million syndicated loan transaction, complete the refinancing of the company’s older, higher coupon bond maturities, it said.

“The latest transaction marks the complete refinancing of Vedanta’s restructured bonds. The strong interest in the series of transactions reflects significant investor confidence in the several strategic steps that Vedanta has taken over the last several quarters in terms of delivering record production, cost rationalisation and deleveraging,” chief financial officer Ajay Goel said.

The company has refinanced $3.1 billion in USD bonds since September 2024 through four successive international bond transactions. “These transactions have repriced Vedanta’s curve and reflect strong demand from international bond investors including numerous marquee investors,” it said.

The total quantum of USD bonds raised by Vedanta marks the largest amount raised by an Indian issuer over the last 3 years. The company’s’ credit ratings have also been upgraded by multiple notches since its return to capital markets in 2024, to reflect the company’s improving liquidity, capital structure and longer debt maturity profile, Vedanta said.