Vedanta Resources Strengthens Balance Sheet with $869 Million Bond Redemption, Saves on High Interest Costs

New Delhi: Vedanta Resources Ltd announced it paid $869 million in October to bondholders, repaying bonds three to four years earlier than planned. This repayment is part of a strategy to manage the company’s finances better by paying off bonds with higher interest rates to save on costs.

Vedanta Resources Finance II PLC (VRF), a fully-owned subsidiary of Vedanta Resources Ltd, repaid $869 million to holders of bonds with a 13.875% interest rate due in 2027 and 2028.

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The company made these payments in several stages during October, according to filings on the Singapore exchange.

For the 2027 bonds, Vedanta repaid $470 million on October 4 and 9. As of the October 4 payment, all 2027 bonds have been fully repaid and are no longer active.

Similarly, the company repaid $399 million for its 2028 bonds. According to a filing from September 11, refinancing these bonds with new ones due in 2029 will save Vedanta around 3% in annual interest costs.

Vedanta’s efforts to reduce its debt, both at the parent company in London and its Indian subsidiary, Vedanta Ltd, have led to a rise in the value of the group’s bonds. Vedanta Resources Ltd reduced its standalone debt by nearly $4.5 billion, from $9.7 billion in March 2022 to $5.2 billion in September 2024, as per the company’s latest investor presentation.

The Vedanta Group is involved in exploring, mining, and processing natural resources such as minerals and oil. It operates in several countries, including India, Namibia, South Africa, UAE, Zambia, Japan, and South Korea, with major business interests in aluminum, zinc-lead-silver, oil and gas, copper, iron ore, steel, and power generation.