Vedanta Resources announced a tender offer for its $1bn 6.375% bond due July 2022. The bond’s price jumped over 1.5 cents on the dollar to 99.96. The offer is capped at $500mn. Investors who tender their bonds by the early deadline of May 11 will receive par plus accrued and unpaid interest. Those who accept later will get $980 per $1000 in principal, plus interest. The offer expires on May 25. Reuters cited a company official saying Vedanta Ltd., the Indian subsidiary was in talks with banks to raise $2.5-3bn in debt, to boost its semiconductor and display manufacturing plants
Separately, Vedanta Ltd., announced an interim dividend of INR 31.5/share ($0.40/share), totaling INR 117bn ($1.5bn), payable on May 28. Vedanta Resources, the parent, which owns 69.7% of the Indian subsidiary, will receive $1bn from the dividend payment and is expected to pay down debt with the transfer.
