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Vedanta Resources redeems $515 mn bonds

Suresh P Iyengar Mumbai | Updated on January 17, 2018 Published on July 14, 2016

vedanta

London-based billionaire Anil Agarwal-owned Vedanta Resources plc has fully redeemed $514.8 million convertible bonds due for repayment on July 13.

The company in a statement on Thursday said with this redemption of the 5.5 per cent convertible bonds, all outstanding bonds in US dollar due for maturity this fiscal at Vedanta Resources plc have been repaid (except for the $8 million, four per cent convertible bonds due in March 2017). The next bond maturity for Vedanta Resources plc is the 9.5 per cent $750 million bond maturing in July 2018.

Vedanta continues to actively manage its maturities and evaluate various options to optimise its balance sheet and reduce the financing costs, including further bond buybacks. The company remains committed to its stated group strategy of deleveraging and strengthening the balance sheet, it said.

Vedanta Ltd, the Indian subsidiary of Vedanta Resources, said it had generated free cash flow of over ₹11,000 crore last fiscal, despite the storm in metal and mining industry. The cash flow was about three times higher than FY15.

The company reduced net debt by over ₹6,000 crore and the group’s liquidity remains strong with over ₹52,000 crore of cash and cash equivalents.

Hindustan Zinc, a subsidiary of Vedanta, announced highest-ever dividend of over ₹12,000 crore. Of this, ₹6,500 crore was credited to Vedanta and about ₹5,000 crore was paid to the Government which owns stake in the company.

Published on July 14, 2016
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