Promoters of Vedanta Ltd have pledged their holding in the organization to raise USD 1.4 billion, mainly for repaying the debt that was coming up for maturity.
In a stock exchange filing, Vedanta mentioned its promoters raised USD 1 billion debt by issuing equivalent notes to Citicorp International Ltd.
Separately, a unit of Vedanta Resources will problem USD 400 million in notes to an entity below Oaktree Capital Group.
The notes in each instances 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 Limited’s (VRL) outstanding USD 900 million 8.25 per cent bonds due 2021,” the organization mentioned in the filing.
The remaining proceeds of the USD 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 mentioned.
The organization did not give particulars. An e-mail sent to the organization remained unanswered.
The USD 400 million from OCM Verde XI Investment Pte Ltd will be applied for the acquisition of up to 11.5 per cent shares in Vedanta Ltd by Vedanta Holdings Mauritius II Limited and payment of any costs, fees and expenditures in connection with the transactions contemplated.
London-primarily based Vedanta Resources Ltd (VRL) final week raised its stake in Vedanta to 55.11 per cent by acquiring from open marketplace shares worth Rs 2,959 crore.
VRL purchased 18.5 crore shares at a cost of Rs 159.94 per share.
It produced the obtain via block offers. The obtain in the open marketplace helped the firm raise its stake in Vedanta Ltd to 55.11 per cent from 50.13 per cent.
The move came weeks right after the firm’s failed try to delist Vedanta Ltd from Indian stock exchanges. The delisting failed due to insufficient quantity of shares getting presented in the buyback proposal of VRL.