By Dev Chatterjee Vedanta Resources (VRL), the diversified mining company headquartered in London, is giving final touches to a plan to raise up to $2.5
Resources conglomerate Vedanta, which faces bond redemptions exceeding $3 billion over the next 18 months at its UK-based holding company, Friday said it would demerge into six listed companies to undergird the valuations of its revenue streams as diverse as mining, energy, and non-ferrous metals.
Mumbai-listed Vedanta, which produces copper, aluminium, iron ore and crude oil, and is a subsidiary of the London-based Vedanta Resources (VRL), said the exercise was aimed at building a simplified corporate structure that would appeal to focused investors.
Indian conglomerate Vedanta Resources is facing increased risk around its upcoming debt repayments, leading to a downgrade by Moody s Investors Services. The company is struggling to raise funds to cover its debt obligations, including $3.2 billion in bonds maturing between 2024 and 2025. Moody s warned of a further downgrade if the company fails to make progress on funding arrangements.
Moody's has also downgraded to Caa3 from Caa2 its rating on the senior unsecured bonds issued by Vedanta Resources and those issued by Vedanta Resources's wholly owned subsidiary, Vedanta Resources Finance II Plc, and guaranteed by Vedanta Resources.