New Delhi
The Vedanta Group is working to secure $1 billion by the end of December to meet a bond repayment due in January, according to the company’s Chief Financial Officer (CFO), Ajay Goel. During a post-earnings call with analysts on November 4, Goel stated that the company is in discussions with several bankers to raise the necessary funds and expects to have the required amount by December end. The mining conglomerate has been grappling with a substantial debt load, but it managed to reduce its net debt by Rs 1,420 crore sequentially to Rs 57,771 crore by the end of the September quarter. The group faces bond repayments of $3.2 billion over the next two years, with approximately $2 billion worth of bonds scheduled for redemption in 2024, half of which are due as early as January. Another $1.2 billion in bonds are due in 2025. Goel expressed confidence in handling upcoming maturities for both Vedanta Resources and Vedanta Limited in the current fiscal year. He highlighted a cash flow plan of more than $1.2 billion and mentioned that the company is exploring various options with public sector bankers and multinational bankers for refinancing and repayment. Furthermore, the Vedanta Group is in advanced discussions to secure a $1.25 billion private loan with an interest rate ranging between 18 and 20 percent. Negotiations with lenders, including Cerberus Capital Management LP, Davidson Kempner Capital Management LP, Varde Partners Inc, and Ares SSG Capital Management Ltd, have been ongoing, and the company is nearing a deal, according to sources. Vedanta did not provide an immediate response to inquiries about discussions with the lenders mentioned in the report.
