Vedanta Resources Raises $500 Million Through Bond Issue to Repay Debt

Vedanta Resources Ltd (VRL), led by Anil Agarwal, successfully completed a $500 million bond issue this October, as per the news reports. The fresh funding, part of the company’s broader debt optimisation strategy, aims to smooth upcoming repayments and strengthen long-term financial stability amid a shifting global commodities landscape.

Strengthening Liquidity and Reducing Borrowing Costs

The company noted that the latest issuance has extended the average maturity of its debt portfolio to over 4 years while bringing the weighted average interest rate down to single digits, a reflection of improved financial resilience. 

The proceeds are being utilised to retire near-term obligations, including a $550 million Private Credit Facility (PCF). 

Post this repayment, Vedanta now faces no major maturities until FY27, supported by a well-balanced liability structure and strong liquidity. The group’s liquidity base is reinforced through dividend inflows from its operating subsidiaries and steady free cash generation. 

Vedanta has also tied up a $500 million term loan facility with a consortium of global and Indian banks, alongside a long-term loan facility with $682 million in undrawn balances.

Operational Performance and Strategic Restructuring

Vedanta’s diversified portfolio, spanning zinc, oil and gas, aluminium, and power, continues to generate robust EBITDA and cash flows. The company emphasised that commodity prices have remained resilient despite global trade disruptions, cushioning profitability. 

Concurrently, the planned demerger of Vedanta Limited into 5 sector-specific entities is on track, intended to enhance transparency, sharpen capital allocation, and unlock long-term value for shareholders.

Commitment to Deleveraging and Value Creation

Reiterating its commitment to disciplined capital management, Vedanta stated that it will continue to honour all debt obligations and maintain its deleveraging trajectory through internal accruals, refinancing, and capital optimisation. 

Since FY22, Vedanta has trimmed its total debt by over $4 billion, reducing gross borrowings from $9.1 billion to $4.8 billion as of June 2025, while diversifying its credit base across bonds and bank loans.

Read More: Vedanta Share Price Surges Over 2% on Plans to Invest ₹1 Lakh Crore in Odisha!

Vedanta Share Price Performance 

As of October 27, 2025, at 9:45 AM, Vedanta share price is trading at ₹499.75 per share, reflecting a gain of 0.84% from the previous closing price. Over the past month, the stock has gained by 10.50%.

Conclusion

By extending its debt maturity profile and lowering financing costs, Vedanta Resources has reinforced its financial foundation, positioning itself strongly for future growth and investor confidence.

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