Vedanta Resources nears $3 billion refinancing deal
₹59,192 crore as of 30 June, doubling in the past year from ₹26,799 crore, according to regulatory filings. Vedanta Resources’ Indian units, Hindustan Zinc Ltd and Vedanta Ltd, paid out a total dividend of $4 billion and $1.2 billion, respectively, to their shareholders in FY23. Of these, the parent received $2.5 billion.
To deleverage its balance sheet, Vedanta Resources has largely relied on these dividends. It has, however, also monetized a 6% stake in Vedanta Ltd over the past year. Accordingly, Vedanta Resources’ debt, which stood at $9.06 billion as of 31 March 2022, has declined to $5.9 billion in June 2023.
Vedanta Resources Finance II Plc’s $1 billion dollar bonds are maturing on 21 January 2024, while Vedanta Resources’ $951 million bonds are maturing on 9 August 2024. Further, Vedanta Resources Finance II Plc’s $1.2 billion bonds will mature on 11 March 2025. These bonds, according to the two people, are mostly held by JPMorgan Chase and StanChart, according to the people cited above.
“This is technically a fee-based deal to roll over Vedanta Resources’ bonds through another large loan at a higher interest rate. Neither the two banks nor the company wants the loan to go bad," said one of the two people. According to the latest deal discussions, JPMorgan and StanChart may extend a refinancing “limit of $1.5 billion each" for Vedanta Resources, said the first person.
“The credit amounts (of refinancing) could be disbursed in tranches over 18 months starting from January," said the first person. The disbursements will be made in varying amounts, such as $450 million, $300 million or $750 million, as and when the need arises, the person added. A StanChart spokesperson from London declined to comment, Queries sent
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