Vedanta plans talks on dollar bond sale

VEDANTA Resources is scheduled to hold discussions with investors today regarding a potential dollar bond issuance designed to refinance expensive private debt, said Bloomberg News citing sources familiar with the plans.The Indian minerals conglomerate, controlled by billionaire Anil Agarwal, has appointed banks to organise investor meetings across Asia, Europe and the United States for a seven-year note with a two-year call protection period. Proceeds from the offering will be combined with existing bank facilities to repay private debt, the newswire said.The move follows a significant decline in borrowing costs for high-yield Asian issuers, which reached four-year lows in September. Vedanta is particularly keen to refinance private debt carrying an 18% interest rate secured in 2023.If completed, this would mark the company’s second dollar bond sale this year, following an issuance in January, said Bloomberg News. Moody’s analysts, including Nidhi Dhruv, said Vedanta’s cash resources should adequately cover interest and debt servicing requirements through September 2026.The planned issuance reflects Vedanta’s ongoing efforts to reduce leverage and lower financing costs. Net debt at the resources group stood at $4.9bn in March, down substantially from $8.9bn two years earlier.The company’s notes maturing in December 2031 climbed to 106.4 cents last week, rebounding from an April low of 90.7 cents and ranking among India’s best-performing high-yield bonds this year, said Bloomberg News.However, challenges persist.Court approval for splitting Vedanta’s Indian unit into five separate entities has been delayed. Bloomberg Intelligence analyst Mary Ellen Olson said a failed demerger could undermine the company’s $10bn three-year capital expenditure programme.Additionally, Vedanta’s bid for insolvent developer Jaiprakash Associates has raised concerns about diversification into unfamiliar sectors, said Bloomberg News.The post Vedanta plans talks on dollar bond sale appeared first on Miningmx.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com