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Vedanta Group’s dollar bonds have fallen following a report that banks have informally approached investors for a potential exchange offer on some of the company’s notes. No details have emerged yet on the specifics of the potential exchange offer. This comes after Foxconn’s departure from its $19.5bn semiconductor JV with Vedanta, citing deadlocked talks on making STMicroelectronics a tech partner and concerns over delayed incentive approvals as some of the reasons. Nevertheless, Vedanta’s chairman Anil Agarwal has declared that his company will enter the chip and displays market this year, “subject to government approval”, as it lined up alternative partners for the venture. Vedanta’s continued foray into the semiconductor space has raised concerns that it may further stretch its finances. Vedanta said that it has lined up partners to set up the semiconductor business in India. Separately, Vedanta noted that it has spent $1.2bn via growth capex in FY 2023 to enhance its assets and production capabilities.
Vedanta’s 9.25% 2026s dropped by over 5 points to 65.8, yielding 27.7%.