Mining conglomerate Vedanta Resources has successfully raised $500 million through a seven-year US dollar-denominated bond issue, which saw demand more than three times the offering size.
According to an exchange filing from Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources, the $500 million bond issue drew bids exceeding $1.6 billion, indicating strong interest from investors. The net proceeds from this issuance will be utilized for repaying existing debt and for general corporate purposes.
With this latest offering, Vedanta has raised a total of $3.6 billion from international bond markets over the past 14 months, ensuring a diversified and staggered debt maturity profile.
“The bonds received final orders of over $1.6 billion, reflecting more than 3x oversubscription from both existing and new investors across the Asia-Pacific (APAC), Europe, the Middle East and Africa (EMEA), and the US. Notably, 97 percent of participants were asset managers and fund managers, underscoring investor confidence in Vedanta,” the company stated.
The distribution of the bond allocations reveals widespread support for Vedanta, with 47 percent attributed to investors from Asia, 24 percent from EMEA, and 29 percent from the US.
The bonds are expected to receive ratings of ‘B2’ from Moody’s and ‘B+’ from Fitch Ratings upon closing.
This initiative aligns with Vedanta Group’s broader strategy for deleveraging and liquidity management, aiming to replace high-cost debt with lower-cost instruments that have extended maturities. This approach enhances its debt maturity profile.
The fundraising effort coincides with Vedanta Resources and its subsidiary Vedanta Ltd achieving consistent cash flows from a diversified operational portfolio and benefitting from cost leadership across various commodities.
For the fiscal year 2025, Vedanta Resources reported strong financial outcomes, with revenues reaching $18.2 billion—an increase of 6.4 percent year-over-year. The company also achieved an EBITDA of $5.5 billion and a margin of 29.9 percent, alongside generating $1 billion in free cash flow post capital expenditures.
Since fiscal year 2022, Vedanta has successfully reduced its debt by over $4 billion, decreasing total gross debt from $9.1 billion to $4.8 billion as of June 2025.
Additionally, the company has focused on consolidating its debt to strengthen its capital structure, thereby improving access to capital markets and enabling longer-term issuances. As part of these efforts, Vedanta has diversified its credit profile through a combination of bonds and bank loans, incorporating new banking partners into its capital framework.
International credit rating agencies have acknowledged Vedanta Resources’ sustainable capital structure, with Fitch, Moody’s, and S&P Global maintaining a stable outlook on the bonds issued.
Citigroup, Barclays, JP Morgan, Mashreq, SMBC Nikko, and Standard Chartered Bank are serving as joint global coordinators and managers for the bond issue, which is set to close on October 15.
Published on October 1, 2025.
