Vedanta Ltd, a subsidiary of Vedanta Resources, has raised Rs 25 billion rupees ($301.06 million)through the sale of bonds maturing in 18 months at sharply higher rates, three merchant bankers said on Friday.<\/p>\n\n\n\n
The company will offer a coupon of 12%, payable on a quarterly basis to investors of the issue, which is unrated, bankers said, adding that the coupon on an annualised basis works out to be around 13%.<\/p>\n\n\n\n
The rate is sharply higher than what the company had paid for a 15-month bond issue in December, when it had raised 8 billion rupees and the coupon was linked to a 91-day Treasury bill yield, which then worked out to around 8.79%.<\/p>\n\n\n\n
“The bond was privately placed to the investors which could and the investors are likely to be the private credit investors or family offices of Indian companies,” a banker said requesting anonymity as he is not authorised to speak to media.<\/p>\n\n\n\n
Vedanta has pledged 100% of the total share capital of its subsidiary Sesa Iron and Steel for these bonds, which are unrated, data from National Securities Depository showed.<\/p>\n\n\n\n
Vedanta did not reply to a Reuters email seeking comment and clarification.<\/p>\n\n\n\n
The fundraising comes at a time when the company is likely to commodities businesses into four companies to get better valuations, Reuters reported on Thursday quoting a source with direct knowledge of the matter.<\/p>\n\n\n\n
The company will spin off its metals, power, aluminium, and oil and gas businesses, with an official announcement likely to come soon, the source said.<\/p>\n\n\n\n
The UK-based parent Vedanta Resources has huge debt maturities of over $4 billion that will need to be refinanced in the next two years, IFR Asia reported quoting analysts.<\/p>\n\n\n\n
Bankers further said, Vedanta Resources has held discussions to extend the maturity of $3.2 billion of bonds due in 2024 and 2025.<\/p>\n","protected":false},"excerpt":{"rendered":"
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