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Vedanta Resources agreed to pay $250mn that it owed to its creditors and suppliers in Zambia. The company plans to resume control of its 80%-owned Konkola Copper Mines that were seized by the Zambian government in 2019. The Zambian government had at the time accused Vedanta of paying less taxes and not disclosing sufficient details about its expansion plans. Vedanta Resources has vowed to invest $1bn in Konkola, to more than double the copper production from that plant. CEO Anil Agarwal said that the plan to pay all creditors is “to make sure I win the hearts of the people… Money will never be a constraint.” With this move being an outflow of funds from Vedanta’s coffers, Vedanta’s dollar bonds were down over 2-4% across the curve. Its 6.125% bonds due August 2024s are down 2.5 points, currently trading at 67.5 cents on the dollar.
Separately, Vedanta and KKR’s JV known as Serentica Renewables raised INR 26bn ($315mn) via a 19Y loan from Power Finance Corporation (PFC) to finance new green projects to meet energy needs of the Vedanta group. KKR has put in $650mn thus far in the JV.