Vedanta launches $3.6bn bond buyback offer until June 23
Business
Vedanta Resources is rolling out a $3.6 billion bond buyback as part of a bigger plan to make its debt easier to manage and cheaper in the long run.
The offer runs until June 23, and Vedanta is also chatting with investors in London, Boston, and New York about new bonds.
Vedanta expects $300m extra buyback costs
Vedanta expects to pay up to $300 million extra since its bonds are trading above face value, but it's confident the move will save it money by cutting borrowing costs by nearly 3%.
Recent boosts like stronger commodity prices and a ratings upgrade are making refinancing smoother.
Global banks like Citigroup, JPMorgan, and Barclays are backing the effort, while Vedanta also handles another $1.8 billion in loan repayments separately.