Vedanta Resources plans to use fresh funds raised through bonds to repay debts

Vedanta Resources Friday said it has raised USD one billion through bonds and will use the net proceeds mainly to repay debt. "Vedanta Resources...through its wholly-owned subsidiary, Vedanta Resources Finance II plc...today raised USD 1 billion through bonds sold in two tranches resulting in the blended average cost of 8.75 per cent and average maturity is 5.8 years," the company said in a filing to London Stock Exchange.

The company intends to use the net proceeds primarily to repay the debt of the company, it said. The bonds, which were sold in two tranches, attracted interest from global investors across Europe, North America and Asia, it said.

"The transaction is undertaken as part of proactive liability management by the company and shall help extend average tenor of its outstanding debt from 3.2 years pre-transaction to about 4 years," it said. Credit Suisse (Hong Kong), J P Morgan Securities plc and Standard Chartered Bank acted as joint global coordinators, joint lead managers and joint bookrunners.