Vedanta Resources has secured investment of USD 500 million through a seven-year dollar-denominated bond offering for its most recent fundraising effort, with bids exceeding USD 1.6 billion, more than three times the issue size. The strong oversubscription shows that the market is growing increasingly assured of the mining conglomerate’s financial soundness and business plan, even in the face of ongoing volatility in global markets.
The bond was issued via Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources, drawing 97 per cent participation from asset managers and fund managers across Asia, Europe, the Middle East, Africa (EMEA) and the United States. The final allocation saw broad investor support: 47 per cent from Asia, 24 per cent from EMEA, and 29 per cent from the US. The bonds are expected to be rated ‘B2’ by Moody’s and ‘B+’ by Fitch, maintaining Vedanta’s stable market outlook.
Vedanta intends to continue its systematic deleveraging and liquidity management exercise with the money it gets from selling bonds. This money will be utilised for general business objectives and to pay off existing debt. The company has modified its debt profile and made its capital structure stronger by paying off high-interest loans and replacing them with lower-interest, longer-term loans. Vedanta Resources has shown its commitment to financial stability by cutting its total gross debt from USD 9.1 billion to USD 4.8 billion as of June 2025 since FY22.
Vedanta’s finances have kept up with its operational excellence. In FY25, sales rose 64 per cent to USD 182 billion, EBITDA was USD 52.5 billion, and free cash flow after capital expenditures was USD 1 billion. The group’s ability to keep costs low and cash flow steady has played a big role in these fundraising outcomes.
Standard Chartered Bank, Citigroup, Barclays, JP Morgan, Mashreq, and SMBC Nikko were among the biggest multinational banks that worked together on this. The offer makes it easier for people to access global finance and extends the time frame for paying back loans. This builds on Vedanta’s total of USD 31.6 billion raised from international bond markets in the last 14 months. |
