Metals and mining company Vedanta Resources Ltd has announced that it has made an upfront payment of USD 779 million to its bondholders as part of its debt restructuring exercise. The payment was completed on Wednesday and marks a significant step in Vedanta’s efforts to ease its massive debt burden.
The company has also successfully completed repayments to its bondholders, with maturities of USD 3.2 billion in bonds being extended to 2029. This achievement aligns with the consents received earlier in the year and demonstrates Vedanta’s commitment to its financial obligations.
Vedanta Resources, led by billionaire Anil Agarwal, has not only made the upfront payment but also paid a consent fee of USD 68 million to bondholders who agreed to the restructuring. The company acquired consent from bondholders in January to restructure four series of bonds, including those due for maturity in 2024, 2025, and 2026.
Vedanta had previously secured a USD 1.25 billion loan from private credit lenders in December to refinance and repay a portion of its debt maturing in 2024 and 2025. The company has been actively working towards streamlining its operations through a demerger and reorganization plan announced in September last year.
The plan aims to revamp the Vedanta Group across its 17 major businesses. Each of these businesses boasts world-class management leadership, cutting-edge technologies, and a commitment to fulfilling domestic demand. The plan also presents promising investment opportunities to both institutional and retail investors.
By fulfilling its payment obligations to bondholders and successfully extending bond maturities, Vedanta Resources has taken significant steps towards alleviating its debt burden. The company’s efforts align with its long-term objective of financial stability and growth.
Vedanta’s proactive approach to debt restructuring and its focus on efficient operations position it as a key player in the metals and mining industry. As the company continues to execute its strategic plans, its path to financial recovery becomes clearer, thus instilling confidence in investors and stakeholders.
This latest development from Vedanta Resources highlights the company’s commitment to managing its debt and maintaining a sustainable business model. With its upfront payment to bondholders and the completion of repayments, Vedanta Resources reinforces its position as a leading player in the metals and mining sector.
