Vedanta Resources gets offers of $1.6 bn for bond issue
Vedanta Resources (VRL) on Tuesday launched its dollar bond issue at a final price guidance of 10.875% and has an order book of $1.6 billion.
The proceeds will help refinance bonds of $470 million due in 2027 and $1 billion due in 2028, with both carrying an interest rate of 13.875%, potentially cutting funding costs by over 300 basis points (3 percentage points).
The bonds will be issued by Vedanta Resources Finance II Plc, a subsidiary of the London-based mining group, and guaranteed by Vedanta Resources, Twin Star Holdings, and Welter Trading.
«VRL has got the funds within the initial price guidance of 11.25%,» said a bond investor. «The company is likely to raise more than $750 million as the order book has already exceeded $1.6 billion.»
A Vedanta spokesperson declined to comment.
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The bonds, rated B- by S&P, are being issued under a 144A/Reg S format with a five-year tenure, a non-call period of two years, and a
