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Vedanta Resources’ dollar bonds fell by over 1.5 points across the curve as investors assess the outcome of the demerger of its Indian business and its impact on repayment of dollar bonds. Analysts note that while the demerger may be completed by March 2025, it may not help in the short-term wherein Vedanta has about $2bn in dollar bond maturities due in 2024. Vedanta is said to have faced some investor opposition when it proposed restructuring payments. It was said to consider paying back a portion of its three dollar bonds maturing in 2024 and 2025 in cash, with the remainder of the principal deferred for three years. CEO Anil Agarwal said, “If we get good terms, we will refinance. Both options are there. Either refinancing or making payment from ourselves”. Besides, when asked about whether financing has been lined-up arranged, Agarwal responded “absolutely”. Regarding the demerger and subsequent impact, CreditSights analysts have sounded a word of caution. They note, “While we see the business reorganization proposal as a positive for Vedanta’s equity story, we are not that positive from a credit perspective”.
Its 13.875% January 2024s fell 1.6 points to 88.85 and its 6.125% August 2024s fell 1.5 points to 61.65.
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