Vedanta promoters raise $1.4 billion to retire debt

New Delhi: Promoters of Vedanta have pledged their holding in the company to raise $1.4 billion, mostly for repaying the debt that was coming up for maturity. In a stock exchange filing, Vedanta said its promoters raised $1 billion debt by issuing equivalent notes to Citicorp International.

Separately, a unit of Vedanta Resources will issue $400 million in notes to an entity under Oaktree Capital Group.

The notes in both cases will be partly secured by shares in Mumbai-listed unit Vedanta Ltd.


The funds raised from Citicorp “will be used to fund the tender offer for any and all of Vedanta Resources’ (VRL) outstanding $900 million 8.25% bonds due 2021,” the company said in the filing.

The remaining proceeds of the $1-billion fundraise shall be used to service the debt of promoter group firms, “VRL, Twinstart or Welter and/or for acquisition of equity shares of Indian subsidiary/(ies) of VRL by Twinstar/Welter if decided and in accordance with applicable law,” it said.