The notes in both cases will be partly secured by shares in
Mumbai-listed unit Vedanta Ltd.
Promoters of Vedanta
Ltd have pledged their holding in the company to raise $1.4 billion, mostly
for repaying the debt that was coming up for maturity.
In a stock
exchange filing, Vedanta said its promoters raised $1 billion debt by issuing
equivalent notes to Citicorp
International Ltd.
Separately, a unit
of Vedanta Resources will issue $400 million in notes to an entity under
Oaktree Capital Group.
The notes in both
cases will be partly secured by shares in Mumbai-listed unit Vedanta Ltd.
The funds raised
from Citicorp "will be used to fund the tender offer for any and all of
Vedanta Resources Limited's (VRL) outstanding $900 million 8.25 per cent bonds
due 2021," the company said in the filing.
The remaining
proceeds of the $1 billion fundraise shall be used to service the debt of
promoter group firms, "VRL, Twinstart or Welter and/or for acquisition of
equity shares of Indian subsidiary/(ies) of VRL by Twinstar/Welter if decided
and in accordance with applicable law," it said.
The company did
not give details. An email sent to the company remained unanswered.
The $400 million
from OCM Verde XI Investment Pte Ltd will be used for the acquisition of up to
11.5 per cent shares in Vedanta Ltd by Vedanta Holdings Mauritius II Limited
and payment of any fees, costs and expenses in connection with the transactions
contemplated.
London-based
Vedanta Resources Ltd (VRL) last week raised its stake in Vedanta to 55.11 per
cent by buying from open market shares worth Rs 2,959 crore.
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