Burdened by a heavy debt load amassed on account of a string of acquisitions, Vedanta Sources restructured the bonds in January, giving it extra time to repay. S&P International Scores, which had warned the deal could set off a selective default, upgraded the corporate final month, citing adequate inner sources to satisfy debt maturities.
“Vedanta Sources’ secure B- credit standing from S&P and enhancing liquidity may breathe new life into its greenback debt, which trades at double-digit yields,” stated Mary Ellen Olson, senior credit score analyst at Bloomberg Intelligence.
Vedanta is in search of to decrease the associated fee on its bonds by as a lot as 400 foundation factors to convey it in excessive single digits, the individuals stated, including the phrases haven’t been finalized but. The bonds are at present providing coupons within the vary of 9.25-13.875%, in keeping with knowledge compiled by Bloomberg.
A spokesperson for Vedanta Sources declined to remark.
The miner, which runs operations from zinc to grease and metal in India, is slowly regaining life with commodity cycle turning.
A dedication to scale back debt by $3 billion by fiscal 2028, coupled with a probably stronger fairness base, may assist “cut back subordination dangers for Vedanta Sources’ bond holders and strengthen credit score high quality,” in keeping with BI.
(By Saikat Das)