Mining major Vedanta Ltd, a subsidiary of London-headquartered Vedanta Resources (VRL), has approved raising of up to Rs 2,100 crore through issuance of non‐convertible debentures (NCDs) through private placements.
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The NCDs would be raised in one or more tranches, the company said in a stock exchange update.
The move comes at a time when its parent VRL is seeking to shore up funds to trim debt.
Earlier in March, Vedanta had approved its fifth interim dividend of Rs 20.50 per share or a total of Rs 7,621 crore for FY23. With this, the total outgo by way of dividends for FY23 was at about Rs 37,733 crore.
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On March 29, Crisil Ratings revised the outlook of Vedanta’s NCDs and long-term bank facilities to ‘negative’ from ‘stable’, citing higher financial leverage and lower financial flexibility. Crisil had revised the rating of Rs 6,444 crore and Rs 3,000 NCDs to ‘negative’, while it reaffirmed an ‘AA’ rating. It reaffirmed an ‘A1+’ rating for Rs 10,000-crore commercial paper and short-term loan facilities.
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VRL has annual debt maturities of about $3 billion each in fiscals 2024 and 2025, with high near-term maturities of $1.7 billion in the first quarter of fiscal 2024. The company is in discussion with lenders for refinancing upcoming maturities of the first quarter of fiscal 2024 and the same is expected to be completed by end of March 2023 or early April 2023, it said.
