Vedanta plans to issue $1.5 billion dividend, lifting parent's bonds

The parent firm's dollar bonds rose the most in six weeks Friday, with the notes maturing in July hitting the highest level since October, according to Bloomberg-compiled data

Vedanta Ltd. will issue Rs 11,710 crore ($1.5 billion) of dividends to shareholders, triggering a rally in the bonds of its parent that will use the income to pay down debt. 
 

Vedanta will pay a dividend of Rs 31.50 a share to investors, it said in an exchange filing Thursday. That will provide some relief to its parent Vedanta Resources Ltd., which faces a wall of maturities, beginning with a $1 billion note due in July. 

Separately, Vedanta Resources announced a tender offer to buy back as much as $500 million of its dollar notes due in July, it said