Vedanta Plans to Meet Investors As It Faces $2 Billion Debt Bill

An employee walks past electrolytic cells in the reduction unit of the Vedanta Ltd. Aluminium Smelter in Jharuguda district, Odisha, India, on Wednesday, June 19, 2019. Vedanta Resources Ltd., owned by Indian billionaire Anil Agarwal, mines and processes copper, zinc and aluminum seams with a focus on India, but has operations in Zambia, Sri Lanka, South Africa and Australia as well.

(Bloomberg) -- Vedanta Resources Ltd. is planning to meet bondholders in Singapore and Hong Kong, people familiar with the matter said, as the junk-rated Indian miner faces repayment of about $2 billion of notes next year.

The non-deal roadshow would take place as soon as next week, said some of the people, who asked not to be named because the matter is private. JPMorgan Chase & Co. and Standard Chartered Plc are helping to organize the event, according to others.

The global increase in borrowing costs has raised the stakes for billionaire Anil Agarwal's firm, which must redeem a record amount of bonds next year. Several of the group's bonds are trading below 75 cents on the dollar, at levels considered indicative of distress. S&P Global Ratings lowered its outlook on Vedanta's B- rating to negative from stable, citing challenging financing conditions.

Vedanta Resources didn't comment when contacted by Bloomberg via email about the planned roadshow. JP Morgan and Standard Chartered declined to comment.

The mining company has already started an exercise to identify investors in its dollar bonds that mature next January and August, as well as those due in March 2025.

The January 2024 note was indicated at 89 cents on the dollar on Thursday, according to Bloomberg-compiled data, while that due in August 2024 was quoted at 63 cents. That suggests investors are more concerned about repayment of the longer-dated debt.

--With assistance from Swansy Afonso.

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