Vedanta Resources launches bond deal

Vedanta Resources said it has launched a 1.7bn-dollar two-part bond deal in a "landmark transaction" for the mining company.

The bonds are being sold to institutional buyers in two tranches. The first includes a $1.2bn aggregate principal amount of 6.0% bonds due in January 2019 and the second consists of a $500m aggregate principal amount of 7.125% bonds due May 2023.

Vedanta, the largest mining and non-ferrous metals company in India, said the transaction represents one of the largest corporate bond issuances out of Asia ex-Japan.

"This transaction demonstrates the financial strength and global recognition of Vedanta as a major natural resources corporate," said Chairman Anil Agarwal.

"It is our fourth bond transaction and each time we have been met with increasingly overwhelming response by investors."

The company intends to apply for the listing of the bonds on the Singapore Exchange Securities Trading.

Vedanta will use the proceeds of the fundraising to refinance existing debt, pay related fees and expenses and for other corporate purposes.

RD