Vedanta Limited Citicorp Creates Encumbrance on Shares for Bond Obligations

Citicorp International Limited, acting as trustee, has created an encumbrance on equity shares of Vedanta Limited (VEDL) held by its subsidiary, Vedanta Holdings Mauritius II Limited (VHMLII). This action supports obligations related to guaranteed senior bonds issued by Vedanta Resources Finance II plc. The encumbrance is subject to specific conditions and restrictions detailed in trust deeds related to the bonds. This is in addition to existing encumbrances, previously disclosed.

Encumbrance Created on Shares

Citicorp International Limited, in its role as trustee for the holders of certain bonds, has created an encumbrance on the equity shares of Vedanta Limited (VEDL). These shares are held by Vedanta Holdings Mauritius II Limited (VHMLII), a subsidiary of Vedanta Resources Finance II plc.

Details of the Bonds

The encumbrance relates to the following guaranteed senior bonds issued by Vedanta Resources Finance II plc:

  • US$ 900,000,000 10.875% Guaranteed Senior Bonds due 2029, issued on September 17, 2024.
  • US$ 300,000,000 10.875% Guaranteed Senior Bonds due 2029 (Tap Bonds), issued on October 25, 2024.
  • U.S.$300,000,000 10.25% Guaranteed Senior Bonds due 2028, and U.S.$500,000,000 11.25% Guaranteed Senior Bonds due 2031, both issued on December 3, 2024.
  • U.S.$550,000,000 9.475% Guaranteed Senior Bonds due 2030 and U.S.$550,000,000 9.850% Guaranteed Senior Bonds due 2033, both issued on January 24, 2025.

Terms and Conditions

The terms and conditions of the bonds include restrictions on VHMLII’s ability to create further encumbrances or dispose of VEDL shares, except under specific conditions. These conditions are detailed in the principal trust deeds and supplemental trust deeds, which now include VHMLII as a subsidiary guarantor.

Supplemental Trust Deeds

Supplemental trust deeds have been executed to include VHMLII as a subsidiary guarantor. These deeds are supplemental to the:

  • Principal Trust Deed 1 (related to the 2029 Bonds and 2029 Tap Bonds)
  • Principal Trust Deed 2 (related to the 2028 Bonds and 2031 Bonds)
  • Principal Trust Deed 3 (related to the 2030 Bonds and 2033 Bonds)

This encumbrance is in addition to previously disclosed encumbrances related to these bonds.

Source: BSE

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