Vedanta Resources Limited (VRL) announced the creation of an encumbrance on equity shares of Vedanta Limited (VEDL) held by its subsidiary, Vedanta Holdings Mauritius II Limited (VHMLII). This action relates to bonds issued by Vedanta Resources Finance II PLC, totaling several billion U.S. dollars. The encumbrance is subject to certain terms and conditions, and supplemental trust deeds have been executed to include VHMLII as a subsidiary guarantor. The effective date of these obligations is October 27, 2025.
Details of Encumbrance
An encumbrance has been created on the equity shares of Vedanta Limited (VEDL) held by Vedanta Holdings Mauritius II Limited (VHMLII), a subsidiary of Vedanta Resources Limited (VRL). This relates to the issuance of bonds by Vedanta Resources Finance II PLC. The key development occurred on October 27, 2025.
Bond Information
The bonds involved in this arrangement are:
- US$ 900,000,000 10.875% Guaranteed Senior Bonds due 2029
- US$ 300,000,000 10.875% Guaranteed Senior Bonds due 2029 (Tap Bonds)
- 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
- 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
Supplemental Trust Deeds
Supplemental trust deeds have been executed to include VHMLII as a subsidiary guarantor, effective from October 27, 2025. These deeds supplement the Principal Trust Deeds related to each bond series. Citicorp acts as the trustee for the bondholders.
Terms and Conditions
VHMLII faces certain restrictions, including limitations on creating encumbrances over its directly held assets unless specific conditions are met, as well as restrictions on acquiring or disposing of VEDL shares except as specified. These obligations became effective on the execution date of the Supplemental Trust Deeds.
Clarifications
The obligations concerning VHMLII concerning the bonds went into effect from the date each of the supplemental trust deeds was executed. It’s also emphasized that, as of this disclosure, no pledge has been established by VHMLII concerning the equity shares of VEDL.
Source: BSE