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“It is a structured transaction with LIC that Vedanta is doing. The corporate has AA ranking bonds. It’s a ten-year paper. It is a direct commerce with non-coupon bidding and is open bidding,” a senior Treasury official defined.
“Pricing is at 10-year G-sec plus 100 foundation factors – most likely round 8.50%,” the supply mentioned.
Whereas the specifics of such structured transactions aren’t made public, the dimensions of the transaction prompt the involvement of LIC, in keeping with a number of sources.
The mining conglomerate can be seeking to increase round Rs1,800 crore to Rs2,000 crore by way of the sale of 18-month papers, although sources didn’t title the buyers who’re prone to take part on this fundraising.
Based on the sources, whereas the 10-year bond transaction had been accomplished, negotiations for the 18-month bonds are nonetheless ongoing.
Vedanta intends to make use of the proceeds to prepay or repay present debt in addition to for capital expenditures. Vedanta final raised funds by way of native foreign money bonds in December 2021. Ranking businesses equivalent to CRISIL and India Rankings upgraded Vedanta’s ranking to AA earlier this yr.
At round 10.56 AM, Vedanta was buying and selling at Rs233 down by Rs1.9 or 0.81% from its earlier closing of Rs234.90 on the BSE. LIC’s counter was buying and selling close to its lowest ranges, and was seen at Rs660.50 on BSE.
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