Vedanta Resources pays bondholders $779 million upfront as part of restructuring

On Friday, Vedanta Resources Ltd announced it made an upfront payment of USD 779 million to bondholders as part of its debt restructuring exercise. The payment was completed on Wednesday, according to a statement from Vedanta Resource Ltd (VRL).

VRL completed bond repayments on Feb 7, 2024, aligning with consents received earlier in the year to extend USD 3.2 billion in bond maturities to 2029.

Vedanta Resources, led by billionaire Anil Agarwal, made a successful upfront cash payment of USD 779 million to bondholders on February 7 to redeem a portion of the bonds and extend their maturities.

 Additionally, it paid a consent fee of USD 68 million to bondholders who agreed to the restructuring.

In January, Vedanta obtained consent from bondholders to restructure four series of bonds, totaling USD 3.8 billion, aimed at alleviating its substantial debt load. These series of bonds consist of two USD 1 billion bonds maturing in 2024, one USD 1.2 billion bond maturing in 2025, and one USD 600 million bond maturing in 2026.

In December, VRL obtained a USD 1.25 billion loan from private credit lenders to refinance and repay a portion of the USD 3.2 billion debt maturing in 2024 and 2025.

In September last year, Vedanta Group unveiled a major demerger and restructuring plan involving 17 key businesses, according to the statement.

The statement highlighted that all businesses boast top-notch management, utilize cutting-edge technologies, prioritize import substitution, cater to domestic demand, and provide diverse investment opportunities for both institutional and retail investors.

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