Vedanta's $1.75B bond refinancing
| status | researching |
|---|---|
| started | 2026-07-01 |
| last updated | 2026-07-01 |
| questions remaining | 07 |
The Hindu Businessline reports
A subsidiary of UK-based Vedanta Resources has accepted bids worth $1.75 billion for a three-tranche issuance of dollar bonds, as it seeks to refinance high-yielding outstanding debt, three merchant bankers said on Friday.
what caught my attention
- potential refinancing rates:
- 6-year USD 500 million @ 7.000% (2032 bond)
- 8-year USD 700 million @ 7.3750% (2034 bond)
- 11-year USD 550 million @ 7.7500% (2037 bond)
- the above rates are so much better than their current bonds (below):
- 2030 USD 550 million @ 9.4750%
- 2031 USD 500 million @ 11.2500%
- 2032 USD 500 million @ 9.1250%
- 2033 USD 550 million @ 9.8500%
initial thoughts
- upgrading of their credit ratings seems to have helped them
- reduce their interest rates
- increase their maturity of their debt
- company's turnaround since 2022 is remarkable, i'd like to understand what drove it
questions i have in mind:
on vedanta
- how did they revenue/profit turnaround so quickly from 2022?
- what happens if commodity prices reverse?
- will credit rating deteriorate again in the next cycle?
on bond refinancing
- how much would they receive net of fees?
- how this refinancing would affect future cash available for dividends?
- they are locking in rates for a longer period - are these gonna be callable bonds? most likely right?
- how rupee depreciation would impact the dividend payout over the years?