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| Vedanta to raise $850 mn via bond issue |
| Press Trust of India / New Delhi Mar 02, 2010, 20:02 IST |
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Mining giant Vedanta Resources today said it would raise $850 million (about Rs 3,911 crore), including the optional $75 million, through issue of convertible bonds to partially repay the debts.
NRI billionaire Anil Agarwal-led Vedanta's bond issue, maturing 2017, was launched globally today.
"The announced size of $775 million may be increased by up to $75 million by way of an over-allotment option granted to the joint bookrunners allowing them to subscribe for up to an additional $75 million of Bonds by 26 March 2010," Vedanta said in an emailed statement from London.
"The company intends to use the net proceeds of the offering to refinance debt redemptions and for general corporate purposes," it added. The company had a net debt of about $200 million by the end of last financial year, according to financial details available on the company website.
Vedanta Resources will give priority to existing share holders in allocation of the bonds, it said, adding Volcan Investments Limited, the majority shareholder of the company, will not be participating in the transaction.
The bonds are expected to have a coupon rate of 3.50-4 per cent payable semi-annually. Bonds will be converted into fully paid ordinary shares with a nominal amount of $0.10 of the company share.
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