Vedanta-parent $500 million bond issue oversubscribed 3x with bids worth $1.6 billion

Vedanta Resources Finance II plc, a subsidiary of Vedanta Resources Limited, said on  that its US$500 million bond issue attracted bids exceeding US$1.6 billion, more than triple the issue size.

The issue drew strong interest from investors across Asia, Europe, the Middle East and Africa, and the United States, with 97% of bids coming from asset and fund managers.

In its filing, VRL said the allocation reflected its wide investor support, with participation split at 47% from Asia, 24% from EMEA, and 29% from the US. The proceeds will be used to repay existing debt and meet general corporate requirements.

Vedanta Resources Limited is the parent company of listed Vedanta Ltd.

The company highlighted that the offering, rated “B2” by Moody’s and “B+” by Fitch, forms part of its broader deleveraging and liquidity management plan. The strategy includes replacing high-cost borrowings with longer-tenor, lower-cost instruments. With this, Vedanta has now raised $3.6 billion from international bond markets over the last 14 months.

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The company has been steadily cutting debt, reducing its gross borrowings from $9.1 billion in FY22 to $4.8 billion as of June 2025. It has also diversified its capital structure with a mix of bonds and bank loans, enhancing market access.

The company posted revenues of $18.2 billion in FY25, up 6.4% year-on-year, alongside EBITDA of $5.5 billion and a margin of nearly 30%. Free cash flow post capex stood at $1 billion, underlining strong operating performance.

At 2:14 PM, shares of Vedanta Ltd were trading at ₹463.10 on the NSE, down 0.58% but recovering from the intraday low of ₹469.85.