Vedanta Resources said it will make bond payments due this month. The company had $416mn of interest and principal payments on its 8% notes maturing on Sunday for which the payment is due today, being a business day. Besides it also has a $27.8mn coupon due on its 9.25% 2026s. In an effort to assuage liquidity concerns, the company also said it was “fully confident of meeting all requirements” due in the first quarter of the fiscal year beginning April as well as all future payments after that.
Separately, Hindustan Zinc, the subsidiary of Vedanta Ltd. said that it has not shelved plans to acquire overseas mines of its parent. Arun Misra, CEO of HZL said, “I still believe it is a good acquisition. And we should have explored the same. However, at this point, we continue to explore all kinds of proposals and(are) working on it”. For context, Vedanta Resources has been trying to sell its offshore zinc asset to HZL for $2.98bn in cash, but has seen vehement government opposition.
Vedanta’s dollar bonds were trading steady with its 7.125% bond due May 31 at 95 cents on the dollar.
