Vedanta Resources Ltd said it paid USD 869 million to bondholders in October to redeem the bonds three to four years before maturity.
The payments are part of a larger capital management plan in which Vedanta Resources Finance II PLC (VRF) — a wholly owned subsidiary of Vedanta Resources Ltd — redeems bonds at higher interest rates to save on interest costs.
VRF has returned USD 869 million to bondholders holding 13.875% bonds due in 2027 and 2028, respectively.
According to the company’s various Singapore exchange filings, the payments were made in several installments during October.
With 13.875 percent of bonds due in 2027, the company returned USD 470 million, according to its filings on October 4 and October 9.
According to VRF’s exchange filing, due on October 4, the 2027 bonds are fully exercised and outstanding.
Similarly, the company returned USD 399 million to the holders of its 13.875% bonds due in 2028.
As per the September 11 filing, the redemption of bonds due in 2027 and 2028 and their reissuance with new bonds due in 2029 will result in an annual interest savings of three percent on the VRF.
Recent balance sheet consolidation moves at London-based Vedanta Resources Ltd and its Indian subsidiary Vedanta Ltd have prompted a rally in bonds issued by group entities.
According to Vedanta’s latest investor presentation, VRL’s sovereign debt has been reduced by around USD 4.5 billion from USD 9.7 billion in March 2022 to USD 5.2 billion in September 2024.
Vedanta Group is a global diversified natural resources group engaged in the exploration, drilling and processing of minerals and oil and gas.
It operates in India, Namibia, Ireland, South Africa, Liberia, UAE, Zambia, Japan, South Korea and Taiwan, and is mainly active in aluminum, zinc-lead-silver, oil and gas, copper, steel businesses. , to produce steel and commercial energy.