Vedanta Resources Clears $869M in Bonds Early to Slash High Interest Costs – Major Liquidity Boost

Vedanta Resources Ltd announced that it has paid USD 869 million in October to bondholders to redeem bonds that were due in 2027 and 2028, repaying them three to four years earlier than planned. This is part of the company’s strategy to manage its cash flow better and reduce interest costs by paying off bonds with higher interest rates.

Vedanta Resources Finance II PLC (VRF), a fully owned subsidiary of Vedanta Resources Ltd, made these payments to bondholders of the 13.875% bonds due in 2027 and 2028. According to filings made on the Singapore exchange, these payments were completed in several phases throughout October.

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Specifically, the company repaid USD 470 million of the 2027 bonds, as noted in filings on October 4 and October 9. With the payment on October 4, all of the 2027 bonds have been fully redeemed and are no longer outstanding. Additionally, the company paid USD 399 million to holders of the 2028 bonds.

In a filing made on September 11, Vedanta stated that repaying and refinancing these bonds with new bonds due in 2029 would save the company around three percent in interest costs per year. This move is part of the company’s larger effort to reduce its debt.

Vedanta has been working to reduce its debt and improve its financial position. According to its latest investor report, the company’s debt has decreased from USD 9.7 billion in March 2022 to USD 5.2 billion by September 2024.

Vedanta Group is a global natural resources company involved in exploring, extracting, and processing minerals and oil and gas. It operates in countries like India, Namibia, South Africa, Ireland, UAE, and more, focusing on industries such as aluminium, zinc, silver, copper, iron ore, oil and gas, and power generation.