Vedanta Resources Ltd. (VRL) reduced its net debt by about $300mn in since April and expects to further reduce its debt by around $500mn in the next half. Having repaid the loan of $325mn at Volcan Investments Ltd., VRL’s ultimate shareholder, the pledge on all the equity shares of VRL has been released. VRL said, “Vedanta Resources believes that strong operational performance from our world class asset base will strengthen our balance sheet and lead to investment grade credit metrics”. Subsidiary Vedanta Ltd. last week approved an interim dividend with a total payout of INR 68.7bn ($933mn) and this was expected to have reduced holding company VRL’s debt by ~INR 44.8bn ($608mn). VRL holds a 65.18% stake in Vedanta Ltd. as of end-June 2021.
Vedanta’s dollar bonds were slightly higher – its 8% 2023s were up 0.2 to 98.9, yielding 8.1%.
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