$VEDL

Billionaire Anil Agarwal-led Vedanta Resources Ltd. is preparing to refinance approximately $5.2 billion in US dollar-denominated bonds and loans as part of its strategy to reduce borrowing costs and strengthen its balance sheet following recent credit-rating upgrades. According to sources familiar with the matter, the UK-based mining and metals conglomerate has appointed eight banks, including Barclays, Citigroup, Deutsche Bank, and JPMorgan Chase, to manage the refinancing exercise. The proceeds will be used to refinance $3.6 billion worth of bonds maturing between 2028 and 2033, along with $1.6 billion in loans due from 2028 onwards. The refinancing effort comes as Vedanta Resources advances plans to demerge its India-listed subsidiary, Vedanta Ltd., into five separate business entities. The group has significantly improved its financial position in recent years, with net debt declining to $4.9 billion as of March 31 from $8.9 billion five years ago, according to an investor presentation. The company's improved financial profile has been recognized by rating agencies, with both S&P Global and Moody’s Ratings upgrading Vedanta Resources’ credit ratings last month. The refinancing could lower the company’s average borrowing cost from the current level of around 10 percent. the transaction is also expected to enhance Vedanta’s debt maturity profile, while reducing medium-term repayment obligations and refinancing risks.