Vedanta Resources Ltd (VRL), the London-headquartered parent of Vedanta Ltd, has successfully raised $500 million through a bond issue in October 2025. The move marks another significant step in the company’s ongoing debt optimisation and deleveraging strategy, as it seeks to improve liquidity, extend debt maturities, and enhance long-term financial flexibility amid a dynamic global commodities market.
Enhancing Liquidity and Debt Profile
According to company statements, the new issuance has extended Vedanta’s average debt maturity to over four years, while reducing the weighted average interest rate to single digits. The proceeds are primarily being used to repay near-term obligations, including a $550 million Private Credit Facility (PCF).
Following this repayment, Vedanta now has no major debt maturities until FY27, supported by a robust liquidity base built on steady cash generation and dividends from its operating subsidiaries.
In addition to the bond issue, Vedanta has secured a $500 million term loan from a consortium of Indian and global lenders, along with a long-term loan facility that retains $682 million in undrawn balances, further strengthening its funding flexibility.
Operational Strength and Strategic Realignment
Vedanta’s diversified portfolio—spanning zinc, oil and gas, aluminium, power, and other natural resources—continues to deliver strong EBITDA and consistent free cash flows. Despite global trade volatility, commodity prices have remained relatively stable, helping the company sustain healthy margins.
The company’s planned demerger of Vedanta Ltd into five independent, sector-focused entities remains on schedule. This strategic restructuring is expected to enhance transparency, sharpen capital allocation, and unlock shareholder value by allowing each vertical to pursue independent growth strategies.
Commitment to Deleveraging and Financial Discipline
Vedanta reaffirmed its commitment to debt reduction and prudent capital management, stating that it will continue to meet all financial obligations through internal cash flows, refinancing, and efficient capital structuring.
Since FY22, Vedanta has reduced its gross debt by more than $4 billion, bringing total borrowings down from $9.1 billion to $4.8 billion as of June 2025. The company’s ongoing debt reduction efforts have diversified its credit profile across multiple instruments, including bonds and term loans.
Summary:
Vedanta Resources Ltd has raised $500 million via bond issuance, aimed at repaying near-term debt and extending maturity timelines. With no major repayments due until FY27, the company has fortified its liquidity and reduced borrowing costs. Supported by diversified operations, strong cash flows, and an ongoing corporate demerger, Vedanta remains focused on deleveraging, financial stability, and long-term value creation for shareholders.
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