Vedanta Resources prepays all of its debt due till March 2023

Mining major Vedanta Resources Limited (Vedanta) on Tuesday said it has pre-paid all of its maturities due till March 2023 and has deleveraged by $2 billion in the past 11 months. The firm said it has achieved half of its $4 billion 3-year debt reduction commitment in the first year, ahead of its plans for this fiscal.

"We would like the investors to note that Vedanta group operating companies, underpinned by strong operating profitability from diversified and low-cost tier-1 assets, are delivering healthy cash flows whilst maintaining disciplined capital allocation," the mining giant said in a statement.

Also read: Vedanta shares drop 6%, take losing run to 8th day. Here's why

During FY 2022, Vedanta Limited delivered an EBITDA of $6.1 billion and a free cash flow (pre capex) of $3.6 billion. 

Vedanta said it is fully confident of meeting its upcoming maturities in the quarter ending June 23. "We have multiple options for both refinancing as well as repayment through internal accruals," it said, adding that the company was in the advanced stage to tie up required financing through a $1 billion fresh loan from a syndicate of banks.

Also read: Centre upset with Vedanta Zinc asset sale plans

The London-headquartered firm said it was also close to finalise $750 million bilateral facilities with various relationship banks. "The remaining liquidity requirements can be addressed internally," it added.

Vedanta Limited, the subsidiary of Vedanta Resources, does not have any pledge except 6.8 per cent of Hindustan Zinc Limited's shares.

The company said that it has over the past 20 years raised more than $35 billion and "has an excellent track record of debt servicing". "Vedanta remains confident of servicing its debt obligations through multiple options including the capability to make payments through internal accruals at all times," it added.

On Tuesday, shares of Vedanta Ltd plunged 6 per cent, taking their losing run to the eighth straight session. The fall comes just a day after Business Today Television reported that the Centre was upset about Vedanta's proposal to sell its global zinc assets to Hindustan Zinc. The government feels that the move would hinder and distort its plan to dispose of its 29.54 per cent residual stake in Hindustan Zinc.