 "Vedanta Resources sells bonds worth $1 bn at one of highest yields in Asia")
Mining giant Vedanta Resources Ltd. was able to secure much-needed funds by selling $1 billion of notes at one of the highest yields for a dollar bond in Asia this year.
The company priced the January 2024 bond on Wednesday at a yield of 13.875%, according to a person familiar with the matter, who asked not to be identified because they aren’t authorized to speak about it. Vedanta Resources plans to use the money to finance a buyback offer for $670 million of notes maturing in June 2021.
Strains have been increasing at the company, which is controlled by billionaire Anil Agarwal, after its attempt to delist Indian unit Vedanta Ltd. failed in October. The planned delisting would have given the parent easier access to cash there. Moody’s Investors Service lowered Vedanta Resources’s credit rating further into junk territory earlier this month.
Barclays Plc, Citigroup Inc., Credit Suisse Group AG, DBS Bank Ltd., Deutsche Bank AG, JPMorgan Chase & Co. and Standard Chartered Plc managed the deal.
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