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Vedanta Resources, through its wholly owned subsidiary Vedanta Resources Finance II plc, has raised $1 billion (about ₹6,900 crore) through bonds sold in two tranches, resulting in a blended average cost of 8.75 per cent. The average maturity is 5.8 years.
The bonds consist of $400 million of 8 per cent bonds due April 2023 and $600 million of 9.25 per cent bonds due April 2026. The issue attracted interest from global investors across Europe, North America and Asia.
The fund raised will extend the average tenor of its outstanding debt from 3.2 years pre-transaction to about four years. The company intends to use the net proceeds primarily to repay existing debt.
Credit Suisse (Hong Kong) Ltd, JP Morgan Securities plc and Standard Chartered Bank were the joint global coordinators, joint lead managers and joint bookrunners respectively.
The bonds, to be rated B2 by Moody’s and B+ by S&P, will be listed on the Singapore Exchange Securities Trading.
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