Vedanta Resources Set to Launch $500 Million Bond Issue Amid Adani Crisis Fallout
Vedanta Resources, which delayed a planned dollar bond sale last week following allegations against Adani Group officials by U.S. prosecutors, is now set to proceed with the issuance on Monday, according to sources familiar with the matter.
The bond issue, expected to raise up to $500 million, will gauge global investor appetite for Indian high-yield credit in the wake of the Adani controversy. The Adani Group, led by billionaire Gautam Adani, has dismissed the U.S. allegations as “baseless.”
“Since the Adani crisis hasn’t escalated as feared, the company decided to move forward with the issuance,” a banker privy to Vedanta’s plans stated. A second source confirmed the sale is proceeding as scheduled.
Vedanta, a UK-headquartered conglomerate with interests spanning oil, gas, mining, and metals, has set initial price guidance for the bonds at 10.375% for 3.5-year notes and 11.375% for 7-year notes. The bonds will also include call options.
In September, Vedanta raised $900 million in its first dollar bond issue in over two years at a 10.875% coupon rate. Proceeds from the upcoming bond sale will be used to refinance outstanding bonds maturing in 2028, one source disclosed.
Global financial institutions, including Citigroup, Barclays, Deutsche Bank, JPMorgan, and Standard Chartered Bank, are serving as joint global coordinators and lead managers for the issuance.
While Citigroup, JPMorgan, and Deutsche Bank declined to comment, Barclays and Standard Chartered did not respond to requests for remarks.
Vedanta has not issued a formal comment on the bond sale as of yet. The move highlights the company’s confidence in navigating market conditions following the Adani allegations, which had initially rattled investor confidence in Indian corporate bonds.
