Vedanta Resources Ltd. (VRL) issued two sets of bonds worth up to $1.25 billion on Tuesday, with a 3.5-year term at 10.25% and a 7-year term at 11.25%. This put Vedanta shares in focus. The company’s existing 13.875% notes, which mature in 2028, are reportedly going to be refinanced with the money. The bond was issued by Vedanta Resources Finance II PLC.
The securities are senior unsecured guaranteed notes with fixed rates that were issued in accordance with Regulation S (144A). Despite setting a price guide of 10.375%, the corporation managed to close the 7-year bond at 11.25% and the 3.5-year bond at 10.25%. The company raised $300 million at a 9.99% rate last month. Vedanta Resources Ltd. and its subsidiaries TwinStar Holding and Welter Trading guarantee the bonds, which have a semi-annual fixed Coupan.
Vedanta’s entire strategy for handling its $4.8 billion debt commitments, which include $3 billion in bonds, $1 billion in bank loans, and a $850 million private credit facility, includes the bond issuance.The business repaid $295 million of its debts at par last week. A second redemption of its 2028 notes is scheduled for December 20 of this year, if funds are available.
Vedanta Share Price
Vedanta Ltd.’s stock fell 0.39 percent to Rs 446.80 on Wednesday at 01:12 PM (IST). The stock had a gap-up start to the day earlier in the day. According to BSE data, as of 01:12 PM (IST), there were 330,323 shares traded on the counter, generating a turnover of Rs 14.72 crore.
The price-to-book value ratio was 3.29 and the stock’s price-to-earnings (P/E) multiple was 15.41. Exchange statistics showed a return on equity (ROE) of 13.79 percent. The stock posted a 52-week high price of Rs 523.60 and a 52-week low price of Rs 230.65, with an intraday high of Rs 451.40 and a low of Rs 444.25 during the day.
