Vedanta aims to refinance its outstanding junk bonds totaling $450 million, seeking debt relief.

Vedanta Resources Ltd., controlled by Indian billionaire Anil Agarwal, is in talks with banks to secure a loan of over $450 million to repay existing debt. The loan, which could have a tenor of 3-5 years, would be used to refinance Vedanta’s outstanding junk bonds. The lenders involved in the talks include First Abu Dhabi Bank, Barclays, Mashreqbank, and Standard Chartered. Vedanta has been working to reduce its debt, having cut it by over $4 billion since 2022, and aims to repay an additional $3 billion over the next two years. The company’s junk bonds, which were valued at a low point of 50 cents on the dollar in July 2022, have since recovered, offering a return of 80% last year. The loan would help Vedanta continue to reduce its debt burden and improve its financial position.