Anil Agarwal-led Vedanta Resources Ltd (VRL) has successfully raised $500 million through a bond issuance in October 2025, reinforcing its balance sheet and continuing its focus on deleveraging. The proceeds from the issue will be utilized to repay near-term obligations, including a $550 million Private Credit Facility (PCF), the company said in a letter to bondholders.
Debt Maturity Extended and Interest Cost Reduced
Vedanta Resources highlighted that the average maturity of its debt portfolio now exceeds four years, with the weighted average interest cost brought down to single digits. This marks a key milestone in the group’s financial restructuring efforts and reflects a stronger, more resilient capital structure.
“With this issuance, the Group now has no material maturities until FY27, ensuring a well-balanced liability framework,” Vedanta Resources stated.
Robust Liquidity and Strategic Refinancing
The diversified natural resources conglomerate said it continues to maintain robust liquidity, supported by steady dividend inflows from its operating subsidiaries and healthy free cash generation.
In addition to the new bond issue, Vedanta has secured a $500 million term loan facility from a consortium of leading global and Indian banks. The company also retains a long-term loan facility with undrawn balances of $682 million, further strengthening its liquidity position.
Operational Strength Across Core Businesses
Vedanta’s core businesses — including zinc, oil & gas, aluminium, and power — continue to deliver strong EBITDA and cash flows, underscoring operational resilience.
Despite global macroeconomic challenges and trade disruptions, commodity prices have remained stable, supporting profitability across the group’s verticals.
Demerger on Track to Unlock Shareholder Value
The ongoing demerger of Vedanta Limited into five independent sector-specific entities is progressing as per schedule. The restructuring aims to unlock shareholder value, enhance transparency, and enable sharper capital allocation within each vertical.
Vedanta Resources reiterated its commitment to maintaining financial discipline, assuring investors that it will continue to honour all debt obligations and sustain its deleveraging trajectory through a mix of internal accruals, strategic refinancing, and capital optimisation.
Debt Reduction Milestone
Since FY22, Vedanta Resources has reduced its total gross debt by over $4 billion, bringing it down from $9.1 billion in FY22 to $4.8 billion as of June 2025.
The company’s focus on consolidating its debt and diversifying its credit profile — through a combination of bonds and bank loans — has provided it with enhanced access to global capital markets and the ability to secure longer-tenor issuances.
Commitment to Long-Term Value Creation
“Your continued trust and support have been instrumental in enabling these results,” the company said in a statement to bondholders, reaffirming its dedication to disciplined capital management and long-term value creation for stakeholders.
