S&P Global Ratings changed the B- rating of Vedanta from stable to negative with a negative outlook
London-based Vedanta Resources will be meeting its offshore bondholders in Hong Kong and Singapore between 11-15 September. The development comes as Vedanta’s deadline for the repayment of $2 billion worth of notes is coming closer. The organization is supposed to pay off the debt by next year.
JPMorgan Chase & Co. and Standard Chartered Plc are helping arrange this meeting, according to a report in Bloomberg.
The stakes have increased for billionaire Anil Agarwal's company, which must redeem a record number of bonds next year due to a global surge in borrowing costs. Several of the bonds of the firm are currently trading below 75 cents on the dollar, which is regarded as a sign of distress. Due to difficult financial conditions, S&P Global Ratings changed the B- rating of Vedanta from stable to negative with a negative outlook.
The mining business has already begun an exercise to find investors for its dollar bonds that are due in March 2025 as well as those that are due in January and August of this year.
The January 2024 note was quoted at 89 cents on the dollar on Thursday, while the August 2024 note was valued at 63 cents. This shows that investors are more worried about the longer-dated debt's repayment.
Earlier on 6 September, Vedanta Resources had begun discussions with Standard Chartered Bank for borrowing $1.2 billion to $1.3 billion of loan against brand fee receivables without any restructuring pre-conditions.
Vedanta is looking to refinance its $3.8 billion worth of bonds maturing between 2024 and 2026 with loans of extended maturities and manageable size.