LONDON: Vedanta Resources Limited, through its wholly owned subsidiary, Vedanta Resources Finance II plc has raised US$ 1 billion through bonds sold in two tranches resulting in blended average cost of 8.75% and average maturity is 5.8 years.
The bonds, which are being sold in two tranches, consisting of US$ 400 million of 8% Bonds due April 2023 and US$ 600 million of 9.25% Bonds due April 2026, attracted interest from global investors across Europe, North America and Asia.
The transaction is undertaken as part of proactive liability management by the Company and shall help extend average tenor of its outstanding debt from 3.2 years pre-transaction to about 4.0 years. Vedanta Resources intends to use the net proceeds primarily to repay existing indebtedness of the Company.
Credit Suisse (Hong Kong) Limited, J.P. Morgan Securities plc and Standard Chartered Bank (all appearing in alphabetical order) are acting as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners.
The Bonds are expected, on the closing date, to be rated “B2” by Moody’s and “B+” by S&P. Vedanta and the Issuer intend to list the Bonds on the Singapore Exchange Securities Trading Limited (the “SGX-ST”). Admission of the Bonds to the official list of the SGX-ST is not to be taken as an indication of the merits of the offering, Vedanta, Issuer or the Bonds.[the_ad id=”31605″]