Wed 06/08/2022 21:14 PM
Share this article:
Editor’s Note: This story was originally published late evening on June 8, and has been reissued during regular business hours to reach a wider audience and incorporates Vedanta’s comment received after the story was published.

Relevant Document:
FY22 Results

Vedanta Resources Ltd. has raised $500 million through a term loan facility from State Bank of India with an average tenor of four years at around 6% to 8%, according to a source briefed and a source who attended the company’s investor call on June 6.

Separately, it has also raised a $100 million revolving credit facility (RCF) from DBS Bank, one of the sources and a third source said. The DBS RCF is likely to carry a tenor of one year, the first two sources said.

The London-based company repaid $1.2 billion to $1.27 billion debt in April and May, which includes $469 million of bonds (via a tender offer) and $700 million to $800 million worth of loans, both sources added. The company is in talks to sign another loan facility with a foreign bank, management said on the investors' call, the sources said.

Vedanta Resources had total debt of $9.1 billion as of March 31, 2022, as reported.

For the financial year ending March 31, 2023, the company has maturities due of $2.7 billion, according to management’s brief to investors during the call, the sources added.

Out of the $2.7 billion maturities due in the fiscal year ending March 31, 2023, the company has deleveraged $1.1 billion and a large portion of the balance maturities has been refinanced, the company spokesperson said responding to the request for comment email sent by Reorg on June 8.

Vedanta Resources will deleverage its debt either through dividends or by raising funds from bank loans, the management said during the investors' call, according to the sources.

Vedanta Resources Ltd.’s bond curve was up 0.5 points to 1.25 points today, June 8, according to two buyside sources. The $400 million 8% senior unsecured notes due April 2023 were indicated at 95.25/96.25, up one point, while the $1.2 billion 8.95% guaranteed senior notes due March 2025 were indicated up 1.50 points at 91.5/93. The $1 billion 6.125% notes due 2024 were indicated up 1.75 at 80.50/82, and the $600 million 9.25% notes due 2026 were indicated at 79/80.5, up 0.50 points, the sources said.

Vedanta Resources’ $1 billion 6.375% notes due July 2022 were indicated steady at 99.625/100.125. The $1 billion 13.875% notes due January 2024 were indicated up 0.75 points at 101.75/102.75, the sources said. The $500 million 7.125% notes due 2023 were also indicated at 94/95, up 0.75 points, the sources said.

DBS and SBI did not respond to requests for comment.

– Dipika Lalwani, Nidhi Pandurangi
Share this article:
This article is an example of the content you may receive if you subscribe to a product of Reorg Research, Inc. or one of its affiliates (collectively, “Reorg”). The information contained herein should not be construed as legal, investment, accounting or other professional services advice on any subject. Reorg, its affiliates, officers, directors, partners and employees expressly disclaim all liability in respect to actions taken or not taken based on any or all the contents of this publication. Copyright © 2022 Reorg Research, Inc. All rights reserved.
Thank you for signing up
for Reorg on the Record!