Vedanta Resources likely to meet investors ahead of $2 billion debt repayment deadline: Report
Vedanta Resources is planning to meet bondholders in Singapore and Hong Kong as the next year deadline of debt repayment is coming closer. The owner of publicly listed Vedanta Ltd, is currently facing next year's deadline for the repayment of about $2 billion of notes next year. The non-deal roadshow is expected to take place as soon as next week, reported Bloomberg citing sources.
JPMorgan Chase & Co. and Standard Chartered Plc are helping to organise the event, according to others, reported BB. The global increase in borrowing costs has raised the stakes for billionaire Anil Agarwal's firm, which must redeem a record amount of bonds next year.
Several bonds of the group are currently trading below 75 cents on the dollar. These levels are considered as indicative of distress, reported BB. In response to the mounting debt on the company, Vedanta's rating, by S&P Globals, degraded from B-rating to negative from stable There was no official information by Bloomberg via email about the planned roadshow, JP Morgan and Standard Chartered.
The mining major has already initiated an exercise to identify investors in its dollar bonds that mature next January and August, as well as those due in March 2025. The data compiled by Bloomberg indicates that investors are more concerned about repayment of the longer-dated debt. The January 2024 note was indicated at 89 cents on the dollar on Thursday, according to Bloomberg-compiled data, while that due in August 2024 was quoted at 63 cents.
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