Vedanta Resources to pare debt by $3 billion over 3 years: Official
The financial year 2025 maturities of $1,100 million and close to $750 million of interest servicing would be managed through brand fees.
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NEW DELHI: Vedanta Resources, the parent firm of Mumbai-based mining conglomerate Vedanta Ltd, does not foresee a rollover of its loans and plans to deleverage as much as $3 billion debt over the next three years, a senior official said at an analyst meeting.
“Deleveraging is our priority. We would be deleveraging the debt of Vedanta Resources by $3 billion over the next three years. Vedanta Ltd’s cash flow pre-growth capex is estimated to be $3.5-4 billion for the financial year 2025, sufficient for secured debt maturities of $1.5 billion,” said Navin Agarwal, VC, Vedanta Ltd and member of Promoter Group, at a recently concluded analysts’ meet, according to analysts who attended the meeting.
The financial year 2025 maturities of $1,100 million and close to $750 million of interest servicing would be managed through brand fees, dividends from operating companies, asset monetisation and other strategic initiatives.
“Vedanta is a dynamic organisation that continuously evaluates its capital structure. The parent company has multiple avenues to meet its debt obligation. Hence, we are not considering a stake sale actively in the near term.
“The recent dilution was part of a broader strategy to achieve optimal capital allocation. We believe the upcoming commissioning of growth projects will significantly enhance earnings potential, leading to a natural reduction in the cost of capital,” he said.
It recently restructured its debt and is completing the payments due to its bondholders, as it looks to complete the demerger and deleveraging exercise.
