Vedanta Resources Raises Rs 9000 Crore Bond

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INDIACSR News Network

LONDON: Vedanta Resources pIc announced the pricing of the offering of bonds in the aggregate principal amount of US$I. 7 billion (Rs.9000 Core) . The bonds are being offered and sold in two tranches, consisting of (i) US$I.2 billion aggregate principal amount of 6% Bonds due January 2019 and (ii) US$500.0 million aggregate principal amount of 7.125% Bonds due May 2023 (together, the “Bonds”)., company said today in the statement.

vedantaThis is a landmark transaction for Vedanta, and Vedanta believes this represents one of the largest corporate high yield bond issuances out of Asia ex-Japan.

Mr Anil Agarwal, Chairman of Vedanta Resources pIc said, “This transaction demonstrates the financial strength and global recognition of Vedanta Group as a major natural resources corporate. It is our fourth bond transaction and each time we have been met with increasingly overwhelming response by investors.”

The Bonds are being offered and sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (“Securities Act”), and outside the United States under Regulation S under the Securities Act. The offering is expected to close on June 3, 2013, subject to customary closing conditions.

Bank of America Merrill Lynch, Barclays, Citigroup, J.P. Morgan, The Royal Bank of Scotland and Standard Chartered Bank are acting as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners and Deutsche Bank is acting as Joint Bookrunner.’

The Bonds are expected, on the closing date, to be rated “Ba3” by Moody’s, “BB” by S&P and “BB” by Fitch. Vedanta intends to use the proceeds of the offering to refinance a portion of its obligations under the its existing 2010 term loan facility (that was entered into to partly finance Vedanta’s acquisition of a controlling stake in Cairn India), which will result in a cancellation of Vedanta’s commitments under a bridge facility, and to pay related fees and expenses and for general corporate purposes.

Highlights: 

One of the largest orderbook size for an Indian issuer – in excess of US$ 10 billion

Largest ever bond offering by any Indian corporate
Largest ever bond offering by a high yield Asian issuer
Lowest coupon’ in the long 5 year tranche for an Indian high yield issuer in the G3 debt markets
Vedanta’s 4th successful bond transaction
Optimal pricing outcome amid high quality demand from high-quality accounts globally registered

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