Vedanta Restructures Bonds: Bondholders Approve Plan

New Delhi, Jan 3 (PTI) Vedanta Resources, the UK-headquartered parent company of Vedanta group, on Wednesday said that it has received consent from bondholders to restructure four series of bonds.

The consent ranges from 97 per cent to nearly 100 per cent across the four series and the consent received is much higher than the required threshold of 66.67 per cent.

"The overwhelming consent to the revised terms will take off immediate pressure on Vedanta to repay the debt obligation," the company said in a statement.

These series of bonds include two of USD 1 billion each that were due for maturity in 2024, one USD 1.2 billion bond in 2025 and one USD 600 million in 2026.

While the first bond got 97.78 per cent of the votes in favour, the other three received 98.69 per cent, 99.66 per cent and 99.12 per cent votes in favour.

The company has called a meeting of investors on January 4, where it will further discuss the plan ahead.

"The Meetings in respect of each Series of Bonds shall be held on 4th January 2024, following which the Company shall make a further announcement in relation to the passing of the Extraordinary Resolution in respect of each Series of Bonds and the execution of the Amendment Documents and the Supplemental Trust Deed," the company said.

Billionaire Anil Agarwal's Vedanta Resources had proposed restructuring four series of bonds to ease its massive debt burden in 2023.

Vedanta Resources Ltd (VRL) last month said it has secured a USD 1.25 billion loan from private credit lenders to refinance/repay part of the USD 3.2 billion debt maturing in 2024 and 2025.

In a statement, Vedanta Resources had said the fundraising will help 'create a long-term sustainable capital structure' and demonstrate its continued ability to access global capital markets and investor confidence in the underlying business.

Without disclosing the names of the lenders, it said loans have been raised from a group of reputable financial institutions to refinance existing liabilities.