Vedanta pauses bond sale plans after Adani market volatility
Vedanta Resources, controlled by Indian billionaire Anil Agarwal, is reassessing timing for a potential sale of dollar bonds, after a US indictment of the founder of separate conglomerate Adani Group fueled market volatility, people familiar with the matter said.
The mining company Vedanta held fixed-income investor calls Wednesday to discuss the possible debt offering. But it’s now considering instead to launch the deal as early as next week, if yields stabilise, according to the people, who asked not to be identified discussing private matters. Vedanta didn’t immediately reply to a request for comment.
The development adds to signs of broader market fallout after US prosecutors on Wednesday charged Adani Group founder Gautam Adani with participating in an alleged bribe plot. Adani took the unusual step of scrapping a dollar bond sale it had just priced, its shares and bonds slid, Indian equity benchmarks underperformed and yields on other dollar securities in the region rose.
Borrowers will often tap the brakes on bond offerings during periods of market volatility.
Vedanta has been no stranger to swings in its own bonds previously, after they were dragged down by plunging metals prices, domestic oil taxes and fears about how it could honor its debts.
But a recovery in commodities and a wave of demand for Indian assets as investors limited exposure to China helped holders who stuck with the company get well rewarded. Its notes due April 2026 are indicated at about 100 cents, up from below 50 cents in 2022.
Proceeds of the potential Vedanta note sale could be used to refinance a conditional redemption of a bond maturing in 2028, the people said.
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