Anil Agarwal-controlled Vedanta Resources successfully raises $1.2 bn via bonds

Anil Agarwal-controlled Vedanta Resources successfully raises $1.2 bn via bonds

Mumbai: Billionaire Anil Agarwal-controlled Vedanta Resources on Friday announced the successful raising of $1.2 billion via bonds sold to international investors.

Those papers were priced at 8.95% with four-year maturity. Vedanta Resources Finance II plc, a wholly-owned indirect subsidiary of the company was the issuer of the papers, guaranteed by the company and two wholly-owned indirect subsidiaries: Twin Star Holdings Ltd and Welter Trading Ltd.

“Proceeds of the Bonds will be used for acquisition of equity shares of Indian subsidiaries of the Company if decided and in accordance with applicable laws,” the company said in a statement on BSE.

Remaining proceeds, if any, will be used primarily to service the existing indebtedness of the guarantors, it said.

ET on Thursday reported that Vedanta Resources raised about $1.2 billion via sale of overseas bonds, for which it received bids up to $3 billion.

FIL Investment (Fidelity), Macquarie, Goldman Sachs, Value Partners, Eastspring Investments, Barings are some of the investors, who bid to own Vedanta papers, it said citing market sources.

The bonds were sold in a private offering to qualified institutional buyers, what it is known as 144A in market parlance. This allows US investors as well to buy those securities.

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