Mining conglomerate Vedanta Ltd repaid a USD 900 million high-cost mortgage via a mixture of QIP proceeds and a brand new USD 350 million facility at a decrease rate of interest, leading to USD 550 million web deleveraging and additional strengthening of its balance sheet, sources mentioned.
The mortgage, taken by subsidiary THL Zinc Ventures in May 2023 at 13.9% curiosity, was partly repaid utilizing funds from Vedanta’s USD 1 billion June 2024 QIP.
Besides, Vedanta raised a brand new USD 350 million mortgage at 9.6% every year from JP Morgan and different bankers, lowering annual curiosity prices by USD 90 million, sources conscious of the matter mentioned.
The refinancing bundle additionally comes with improved phrases and circumstances, they mentioned.
The transfer aligns with Vedanta’s broader deleveraging technique. As of December quarter, its web debt-to-EBITDA ratio improved to 1.4x from 1.9x in Q1 FY24, with a 1x medium-term goal.
Meanwhile, its mother or father firm Vedanta Resources Ltd (VRL) has decreased its debt to USD 4.9 billion – its lowest stage in a decade.
In February, Vedanta raised ₹2,600 crore through unsecured non-convertible debentures (NCDs) at 9.40-9.50% coupon charge, attracting institutional traders, together with ICICI Prudential, Kotak, Nippon, Aditya Birla Sun Life, and Axis.
Rating companies responded positively, with ICRA and CRISIL assigning an ‘AA Rating/Watch with Developing Implications’, additional strengthening Vedanta’s refinancing choices at decrease prices.
Published – March 12, 2025 12:12 pm IST
