Vedanta Plans $365 Million Rupee Bond Sale
Vedanta Plans US$365 Million Rupee Bond Sale at 8.75% Coupon
Indian diversified mining company Vedanta is preparing to raise 35 billion rupees (about US$365 million) through its first rupee-denominated bond issue of the financial year, according to two merchant bankers.
The company plans to issue three-year bonds at a coupon of about 8.75%, with the transaction expected to be completed within three to four days ahead of the Reserve Bank of India’s monetary-policy decision early next month.
Vedanta has reportedly tied up with several foreign banks and mutual funds for the issue. The bankers spoke on condition of anonymity as they were not authorised to comment publicly.
The bonds have been rated AA+ by Icra and Crisil. The coupon will increase by 50 basis points if Vedanta’s rating is downgraded from AA+ to AA−, with a further 25-basis-point increase for each additional rating notch below AA−.
The planned issue follows Vedanta’s 25.75-billion-rupee bond sale in March, when the company raised funds through three-year bonds carrying an annual coupon of 8.95%.
Vedanta had not responded to a Reuters request for comment at the time of publication.
