Vedanta Resources, the parent company of the Mumbai-based mining conglomerate Vedanta Ltd., has successfully raised USD 300 million by exercising the tap option on an existing bond issuance.
A tap issue allows companies to issue additional bonds or other short-term debt instruments based on previous offerings. In a recent filing with the Singapore Exchange, Vedanta Resources Finance II PLC (VRF), a wholly-owned subsidiary of Vedanta Resources Ltd, announced the exercise of this tap option on its USD 900 million bond issuance from September, which has resulted in a further USD 300 million being raised at a yield of 9.99 percent. This move is part of the company’s ongoing liquidity management strategy.
The latest issuance attracted final orders exceeding USD 500 million, reflecting strong interest from both existing and new investors. Notably, 67 percent of the allottees were based in the Asia Pacific (APAC) region, 26 percent were from Europe and the Middle East, and 7 percent originated from the Offshore United States. The bonds have been rated ‘CCC+’ by S&P Global Ratings.
According to the company, the net proceeds from this tap option will be utilised to partially prepay Vedanta’s USD 608 million bonds with a 13.875 percent coupon rate, which is due in 2028.
Vedanta’s Chief Financial Officer, Ajay Goel, expressed the company’s satisfaction with the overwhelming response to the tap offering, particularly following the recent issuance of the USD 900 million bonds in September 2024. He stated that this strong interest demonstrates the confidence that the global investor community has in Vedanta’s robust business performance and its commitment to achieving a balanced capital structure through the deleveraging of its balance sheet.
Goel further asserted, “We are confident of continuing to deliver substantial value for our global and domestic investors in the years ahead.”
In September, Vedanta Resources had raised USD 900 million in its first dollar bond issuance in over two years, aimed at prepaying existing bonds. This initial raise featured a coupon rate of 10.875 percent for a five-year US dollar-denominated bond, attracting subscriptions from over one hundred investors, including participants from the USA, Europe, and the Middle East.
