According to a recent note by Standard Chartered, Vedanta Resources Ltd. (VRL) could potentially extend its outstanding dollar bonds. VRL has several avenues to tackle debt repayments which include internal cash flows, dividends, debt raising, increased management and brand fees, inter-company loans, stake sales and asset sales. However, the note added that despite the HoldCo having few options at its disposal, an eventual extension of its dollar bonds cannot be ruled out given the low OpCo cash balance, upcoming large maturities in FY24-25 and high cost of funding. The company has a funding gap of $1.3bn from July 2023 to March 2024, and a funding requirement of $4.3bn in FY25.
Vedanta’s bonds traded flat to slightly positive – its
13.875% 2024s traded at 92.1 cents to the dollar.
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