Bulletin: Vedanta Resources' Strong Results Reduce Immediate Refinancing Risks

This report does not constitute a rating action. SINGAPORE (S&P Global Ratings) May 3, 2022--Vedanta Resources Ltd.'s immediate refinancing risk has eased. The company's subsidiary Vedanta Ltd. has reported strong earnings and proposed a dividend payout of about US$1.6 billion. On the back of this, Vedanta Resources has announced a tender offer for half of its US$1 billion bond due in July 2022. We estimate Vedanta Resources (B-/Stable/--) has now secured funding for about two-thirds of its debt servicing needs of about US$2.8 billion in the first half of fiscal 2023 (year ending March). The debt servicing includes interest payments as well as the repayment of an intragroup loan of US$300 million. Vedanta Resources is in advanced stages of tying

...SINGAPORE (S&P Global Ratings) May 3, 2022--Vedanta Resources Ltd.'s immediate refinancing risk has eased. The company's subsidiary Vedanta Ltd. has reported strong earnings and proposed a dividend payout of about US$1.6 billion. On the back of this, Vedanta Resources has announced a tender offer for half of its US$1 billion bond due in July 2022. We estimate Vedanta Resources (B-/Stable/--) has now secured funding for about two-thirds of its debt servicing needs of about US$2.8 billion in the first half of fiscal 2023 (year ending March). The debt servicing includes interest payments as well as the repayment of an intragroup loan of US$300 million. Vedanta Resources is in advanced stages of tying up the remaining funds of about US$1 billion. While we expect Vedanta Resources to be able to secure adequate funding over the next few weeks, the company has the ability to tap further dividend payments from Vedanta Ltd., if required. Vedanta Ltd. reported consolidated cash of about US$4.2 billion...

Bulletin