Tuesday, December 29, 2020

Promoters of Vedanta raises $1.4 billion to retire debt, says report

 

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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