Vedanta Resources is likely to have sufficient liquidity until December 2023, as per S&P. They noted that the conglomerate was trying to secure about $1bn in funding via one of its operating companies. Besides, the parent company (Vedanta Resources) is also in talks for at least another $2bn in funding. Vedanta Resources has about $3bn in debts due in fiscal 2023 and at least another $1bn in unfunded obligations until March 2024. These debts include bond maturities, interest and inter-company loans. S&P believes that Vedanta will be able to secure the required funds to support liquidity beyond December 2023.
Twin Star Holdings, a subsidiary of Vedanta Resources’ owns a 46% stake in the operating company, Vedanta Ltd. (an Indian subsidiary). The rating agency noted that in the past, Vedanta Resources has been more successful raising debt at the Twin Star level, given the structural seniority of Twin Star’s debt to Vedanta Resources debt. They note that Twin Star has the ability to raise ~$500mn under its debt covenants. Also, Vedanta Resources’ $1bn 13.875% bond due January 2024 and a $400mn bank loan due 2024 are part of the debt at intermediate holding companies, Twin Star and Vedanta Netherlands Investments B.V. These should ultimately help the Vedanta Resources pay off their debts.
Some of Vedanta’s dollar bonds were trading higher – its 8.95% 2025s were up 1.4 points to 64.03.
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