By December 31st, Vedanta plans to raise $1 billion to pay back debts

 By December 31st, Vedanta plans to raise $1 billion to pay back debts

For the next two years, the corporation will be repaying $3.2 billion in bonds. Bonds totaling around $2 billion are scheduled for redemption in 2024, with half of those payments due as early as January, and an additional $1.2 billion in 2025.

Vedanta has had difficulties funding its projects and is weighing its alternatives, which include maximizing the value of its companies.

In a post-earnings call alongside analysts on November 4, Chief Financial Officer (CFO) Ajay Goel said that the Vedanta Group aims to raise $1 billion by the end of December to settle a bond repayment that is due in January. He also stated that the business is in contact with other lenders.

"We at Vedanta Resources Ltd required almost a billion in the next six months, involving we have multiple options, we have meetings with many bankers," Goel said. He also stated that the business would "hopefully by December end" have the necessary funds.

The mining company, which is drowning in debt, succeeded in bringing down its net debt to Rs 57,771 crore at the end of the September quarter, a sequential reduction of Rs 1,420 crore.

Over the next two years, the company will be repaying $3.2 billion in bonds, according to statistics from Bloomberg. The data indicates that almost $2 billion worth of bonds are scheduled for redemption in 2024, with half of those bonds due as early as January, and an additional $1.2 billion in 2025.

"For both Vedanta Materials and Vedanta Limited, we feel comfortable about approaching maturities in the current fiscal," Goel said. Goel noted a cash flow plan of over $1.2 billion while commenting on debts that mature in the second half. He also said that the firm is interacting with capital markets, including public sector and global bankers.

We have a number of alternatives when it comes to repayment and refinancing," Goel said. On November 4, Bloomberg revealed that the organization is in advanced discussions to get a $1.25 billion private loan with an interest rate ranging from 18 to 20 percent.

According to the article, which cited individuals familiar with the subject, the business is close to reaching an agreement after weeks of discussions with lenders, comprising Cerberus Capital Management LP, Davidson Kempner Capital Management LP, Varde Partners Inc, as well as Ares SSG Capital Management Ltd.

When questioned about the conversations with the lenders that were referenced in the Bloomberg article, Vedanta did not answer right away.

On November 4, the firm announced a net loss of Rs 915 crore for the July-September quarter. The company's transition to a new tax framework resulted in unusual costs that caused a net loss.

According to the company's press statement, the quarter's cost of financing increased by 54% year over year (YoY), mostly as a result of rising average borrowing and blended cost of borrowing.

"Not really," Goel said when asked whether financing expenses will rise any more. The cost of finance is not always related to Vedanta or Vedanta Resources; rather, it is more a reflection of the macroenvironment that exists today. Our latest refinancings are comparable and not very costly."

Vedanta has had trouble funding its initiatives and is thinking about a number of solutions, such as maximizing the value of its companies. Indeed, earlier this year, the company's parent Vedanta Resources received almost $450 million from two of its competitors, raising doubts about the company's ability to get funding from banks and other traditional debt channels.

The actions are being taken while the company considers reorganizing its operations. The board of the corporation authorized a proposal in September to divide the company into six entities that are listed independently.