Vedanta Resources’ $500 million bond issue gets 3x oversubscription with bids worth $1.6 billion

Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources Limited, said that its bond issue worth $500 million was oversubscribed three times, attracting a bid of $1.6 billion. The amount was raised through the sale of 9.125% of a seven-year US dollar-denominated bond issue due 2032. As per the statement, the net proceeds from the offering of the bonds will be used to repay existing debts (including interest) and for general corporate purposes.

The offering is expected to close on October 15, 2025, subject to customary closing conditions. Citigroup, Barclays, J.P. Morgan, Mashreq, SMBC Nikko and Standard Chartered Bank are acting as joint global coordinators and managers. 

With this offering, Vedanta has raised US$3.6 billion from international bond markets in the last 14 months and, in the process, ensured a spread-out debt maturity profile.

“The Bonds received final orders of over US$1.6 billion, recording more than 3x oversubscription from existing as well as a new set of investors across APAC, EMEA and the US, with 97% participation from asset managers/fund managers, highlighting the confidence of investors in the Vedanta story and the management team,” read the statement.

The final allocation of the Bonds reflected the broad-based support which Vedanta enjoys, including 47% from Asia, 24% from EMEA, and 29% from the US. As per the statement, the bonds are expected to be rated “B2” by Moody’s Ratings and “B+” by Fitch Ratings Limited on the closing date. 

“This transaction demonstrates our ability to access global capital markets with the right timing and structure. By successfully placing a $500 million bond inside our secondary curve at 9.125%, we have extended our debt maturity profile while lowering the overall interest cost of our debt stack. The strong investor response reflects confidence in Vedanta’s strategy, robust corporate governance and the strength of our diversified portfolio”, said Ajay Goel, Chief Financial Officer, in the statement. 

At the time of reporting, Vedanta’s shares were trading lower by .32%, at Rs 464.30 apiece in today's trading.