The UK-based conglomerate has hired eight banks, including Barclays Plc, Citigroup Inc, Deutsche Bank and JPMorgan Chase & Co. for the deal, said the people, who asked not to be identified because the information is private. Part of the proceeds will be used to refinance $3.6 billion of bonds maturing between 2028 and 2033, and $1.6 billion of loans due from 2028 onward, they added.
Agarwal is seeking to shore up Vedanta Resources’ balance sheet as the group pursues a split of India-listed unit Vedanta Ltd. into five businesses. Net debt has fallen to $4.9 billion as of March 31 from $8.9 billion five years earlier, according to an investor presentation, while both S&P Global and Moody’s Ratings upgraded the company’s credit ratings last month.
The transaction could help Vedanta lower its average borrowing costs from about 10%, Bloomberg Intelligence analyst Mary Ellen Olson wrote in a note. The deal is also likely to smooth the company’s debt maturity profile and cut medium-term repayment and refinance risks, she said.
The London-based company is targeting a reduction of as much as 300 basis points in funding costs through the refinancing, the people said. The deal may include amortizing bonds with maturities of five, seven and 10 years, allowing the firm to repay principal gradually over time.
Vedanta also plans to start exercising call options on those bonds this year. For securities that are not callable in the first half of 2026, it plans to offer investors a repurchase price that falls between the bonds’ make-whole value and market price, the people said. The bonds were issued by group company Vedanta Resources Finance II PLC.
Mashreq Bank, Sumitomo Mitsui Banking Corp., First Abu Dhabi Bank and Standard Chartered Bank are the other banks mandated on the deal, said the people, adding that the new issue is expected to be launched soon.A spokesperson from Vedanta Group did not immediately respond to a request for comment sent by email. Barclays, Citigroup, Deutsche Bank, JPMorgan, and Standard Chartered all declined to comment. Mashreq, SMBC and FAB did not reply to an email seeking comment.