Vedanta to raise up to Rs 2,500 crore via NCDs

The Committee of Directors of Vedanta Ltd has approved raising up to Rs 2,500 crore through the issuance of non-convertible debentures (NCDs) in one or more tranches.

The company will issue up to 2,50,000 secured, unrated, unlisted, redeemable NCDs of face value of Rs 1 lakh each.

"The duly authorized Committee of Directors at its meeting held today (Thursday) considered and approved for raising, on a private placement basis, up to 2,50,000 Secured, Unrated, Unlisted, Redeemable, NonConvertible Debentures of face value Rs 1,00,000 each aggregating up to Rs 2,500 crore in one or more tranches," the company said in an exchange filing.

The company said fundraising is part of its routine refinancing that is undertaken in the ordinary course of business.

Vedanta has two separate term loans of Rs 300 crore and Rs 1000 crore due on November 14, 2023, and on March 31, 2024, respectively. The fresh issues of bonds likely meet the capex requirements or repay these terms loans.

The fundraise also comes at a time when its parent Vedanta Resources is working round the clock on the redemption of the upcoming $3.2 billion offshore bonds.

Vedanta Resources has $1 billion 13.875% bonds due in January 2024, $1bn 6.125% bonds due in August 2024 and $1.2bn 8.95% bonds due in March 2025.

At a bondholders’ meeting organized by Standard Chartered Bank and JP Morgan between September 11 and 15 at Singapore and Hong kong, respectively, it proposed extending the tenure of the bonds by three years, ET had reported earlier.

S&P Global Ratings had revised Vedanta Resources' outlook in August to negative, raising concerns over the company's ability to refinance its upcoming liabilities. Earlier, it warned of a possible downgrade of the offshore bonds if it fails to compensate the bondholders adequately.

Vedanta Ltd has operations in oil and gas, zinc, lead, silver, copper, iron ore, steel, and aluminium and power across India, South Africa and Namibia.

On Thursday, the company's shares closed 2.20% lower at Rs 226.7 on NSE.