Vedanta plans Rupee bond issue
Mining major Vedanta is reportedly planning its biggest rupee bond issue, proceeds of which will be used to lower debt and for capital expenditure. The Anil Agarwal-led firm is seeking commitments for around Rs 4,809 crore of 10- year notes, a Bloomberg report said ton Monday.
The move comes days after Vedanta disclosed that it has pledged a 5.77 per cent stake in Hindustan Zinc Ltd (HZL) for a term loan of Rs 8,000 crore. Recently, the Cabinet Committee on Economic Affairs (CCEA) had approved the government’s 29.5 per cent stake sale in HZL. HZL was a government-owned firm till 2002.
In April 2002, the Centre offloaded 26 per cent stake in HZL to Sterlite Opportunities and Ventures Ltd for Rs 445 crore — giving Vedanta group management control in HZL. Vedanta g roup later bought 20 per cent from the market and another 18.92 per cent from the government in November 2003, raising its ownership in Hindustan Zinc to 64.92 per cent.
However, group chief Agarwal had said in an interview that Vedanta will not be looking to increase its stake in HZL in the latest round. Earlier this year, Crisil and India Ratings had upgraded the ratings on Vedanta to AA. Crisil had said that the rating action factors in stronger-than-expected operating profitability — earnings before interest, tax, depreciation and amortisation or EBITDA — driven by elevated commodity prices during fiscal 2021-22 and volume growth across businesses coupled with sustained cost efficiency, especially in the aluminium business of the company.