Vedanta Resources accepts bids worth $800 million for dollar bonds, bankers say

Mumbai: UK-based Vedanta Resources, parent of India's Vedanta, has accepted bids worth $800 million (approx. Rs 6,744 crore) for two planned dollar bonds to refinance outstanding debt due in 2028, two bankers said on Tuesday.

The company will pay a coupon of 10.25 per cent on three-year and six-month bonds and 11.25 per cent on seven-year bonds, the bankers said, compared with the initial price guidance of 10.375 per cent and 11.375 per cent, respectively. The notes also have call options.

The sources did not wish to be identified because they were not authorised to speak with the media.

Vedanta, which has interests ranging from oil and gas to mining and metals, did not immediately respond to a request for comment.

The dollar bond issue was being closely watched as it was the first by an Indian company since Adani Group's top officials were indicted by U.S. prosecutors over allegations of fraud and bribery.

"The success of this bond issue was crucial as the Indian debt market was eyeing whether there would be any contagion impact from the Adani crisis," one of the bankers said.

Adani Group, led by billionaire Gautam Adani, has said the allegations made by the US authorities are "baseless".

In September, Vedanta Resources raised $900 million (approx. Rs 7,587 crore) in its first dollar bond issue in more than two years at a coupon of 10.875 per cent.

Citigroup, Barclays, Deutsche Bank, JPMorgan, and Standard Chartered Bank were the joint global coordinators and lead managers for Vedanta's dollar bond.