Vedanta Resources, the London-based mining and Metals Company led by billionaire Anil Agarwal, has raised US$ 1 billion by selling bonds to refinance its near-term debt obligations.
The new bonds were sold at a coupon of 6.375 per cent and will mature in the year 2022, said two people familiar with the development.
The company has used these proceeds to buy back through a tender offer part of two series of bonds maturing in 2018 and 2019. It has bought back close to US$ 800 million worth of these bonds.
This exercise will help the company reduce interest cost as well as replace near-term debt obligations with longer tenor paper. The 2018 and 2019 bonds carried annual coupon rates of 9.5 per cent and 6 per cent, respectively.
The company started the book running process for the new bonds on 16thJanuary 2017 and commenced tender offers alongside to purchase for cash any and all of its outstanding bonds.
The company has redeemed US$ 370.87 million of the 2018 bonds and US$ 425.03 million of the 2019 series bonds, it said in a statement on Monday.
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