The bond sale might climb to $1 billion relying on the response from buyers, in response to one of many individuals. The corporate can be exploring different avenues of fundraising, together with fairness gross sales and native foreign money loans from home banks, the individuals stated.
Officers at Vedanta didn’t instantly reply to a request for remark.
The transfer comes at a time when 4 high-yield greenback bonds offered by Vedanta’s guardian firm, Vedanta Sources Ltd., are the highest performers from India up to now this yr, in response to information compiled by Bloomberg. The holding firm earlier this yr efficiently restructured its offshore bonds.
Vedanta Ltd. has traditionally offered native foreign money bonds and borrowed in rupees from native lenders. Final week, the corporate’s board accredited the sale of 10 billion rupees ($120 million) in native, non-convertible debentures.
Vedanta has pursuits in semiconductors and commodities together with aluminum, oil and fuel, iron and copper. Whereas largely concentrated in India, it has operations in South Africa, Namibia and Liberia as nicely.
The 2024-25 fiscal yr is lining as much as be a essential one for Vedanta, Government Director Arun Misra stated throughout an analysts’ name on April 25, when he mentioned plans for $1.9 billion in capex spending. The greenback bond sale would offer income for that enlargement.
In an overhaul introduced final yr, Agarwal is working to divide the corporate into six totally different enterprise items: Vedanta Ltd. would management the semiconductor, zinc and stainless-steel enterprise. The corporate stated the break up can be accomplished within the fiscal yr ending in March 2025.
(By Saikat Das)