By Dharamraj Dhutia and Khushi Malhotra
MUMBAI (Reuters) -A wholly-owned subsidiary of Vedanta Resources plans to raise funds through sale of seven-year U.S. dollar-denominated bonds, two merchant bankers said on Monday.
Vedanta Resources Finance II could look to raise around $750 million through these bonds over the next few days, which will have a call option at end of two years, the added.
The proceeds will be used to repay a private credit facility, and any additional proceeds will be used to repay other debts and for general corporate purposes, one of the bankers said.
Investor appetite for dollar bonds from Indian companies has risen over the last few weeks after S&P Global’s rating upgrade in mid-August, boosted the country’s credit profile.
State Bank of India raised $500 million through dollar bonds with the favourable pricing spurring expectations of more firms tapping the overseas market.
This is the second dollar bond issuance by the company in 2025. In January, it had raised $1.10 billion through five-year-and-six-months bonds at 9.4750% and eight-year-and-three-months bonds at 9.85%.
“The company has got the rating, and if the investor response is good, they could raise the entire amount in one go,” a banker with direct knowledge of the matter said.
The offering is rated B2 by Moody’s and B+ by Fitch Ratings.
The company did not reply to a Reuters email seeking request. The bankers requested anonymity as they are not authorised to speak to media.
The issue will carry a guarantee from parent Vedanta Resources. Other subsidiaries, including Twin Star Holdings, Welter Trading and Vedanta Holdings Mauritius II, will provide a supplementary trust deed that will also unconditionally guarantee the issue.
The company has mandated six foreign banks as arrangers and they will host investor calls in Asia, Europe and the U.S. starting later in the day.
(Reporting by Dharamraj Dhutia and Khushi Malhotra; Editing by Mrigank Dhaniwala)
