The ‌notes are expected to be rated Ba3/BB–/BB, in line with the issuer. | Photo Credit: DANISH SIDDIQUI

A subsidiary of UK-based Vedanta Resources has ​accepted bids worth $1.75 billion for a three-tranche issuance ‌of dollar bonds, as it ​seeks to refinance high-yielding outstanding debt, ⁠three merchant bankers said on Friday.

Vedanta Resources Finance II has raised $500 million through six-year bonds ‌at a coupon of 7.00 per cent, $700 million through eight-year bonds at a ‌7.3750 per cent coupon, and $550 million through 11-year ‌bonds ⁠at a coupon of 7.75 per cent, ⁠the bankers said.

The pricing was 25 basis points below the initial guidance of 7.25 per cent, 7.6250% and ​8.00 per cent, they ‌added.

The bankers requested anonymity as they are not authorised to speak to the media, while the company did not ‌respond to a Reuters email seeking ​comment.

The bonds will be guaranteed by the parent firm as ⁠well as subsidiaries Twin Star Holdings, Welter Trading and Vedanta Holdings Mauritius II. The ‌notes are expected to be rated Ba3/BB–/BB, in line with the issuer.

Proceeds will be primarily be used to refinance higher yielding debt worth over $2 billion.

The company aims to buyback outstanding $550 ‌million of the 9.475 per cent 2030 bond, $500 million of ​the 11.25 per cent 2031 paper, $500 million of the 9.125 per cent 2032 bond and $550 ⁠million of the 9.85 per cent 2033 notes.

In October, the ⁠unit had raised $500 million, selling seven-year dollar bonds at a coupon ‌of 9.1250 per cent, and this is one of the papers that it intends ​to repurchase.

Published on June 26, 2026