Citicorp International Limited, acting as trustee, has created an encumbrance on the shares of Vedanta Limited (VEDL) held by subsidiaries of Vedanta Resources Limited (VRL). This is related to the issuance of US$500 million guaranteed senior bonds due 2032. The encumbrance is part of a trust deed executed between Citicorp, the issuer (Vedanta Resources Finance II Plc), and VRL, to secure the bondholders’ interests. The obligations come into effect upon the execution of a supplemental trust deed.
Encumbrance on Vedanta Shares
Citicorp International Limited has announced the creation of an encumbrance over equity shares of Vedanta Limited (VEDL). These shares are held by Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited, all subsidiaries of Vedanta Resources Limited (VRL). This action is connected to a recent bond issuance by Vedanta Resources Finance II Plc.
Details of the Bond Issuance
Vedanta Resources Finance II Plc issued US$500 million 9.125% guaranteed senior bonds due 2032 on October 15, 2025. A principal trust deed was executed on the same date between Citicorp, the issuer, and VRL. Citicorp is acting as the trustee for the bondholders. A supplemental trust deed is expected to be executed on or prior to October 31, 2025, involving Citicorp, the issuer, VRL, and the aforementioned subsidiaries.
Terms and Conditions
The terms and conditions of the bonds include restrictions on the Promoter Group Entities, preventing them from creating encumbrances on their assets and setting conditions for the acquisition or disposal of VEDL shares. These obligations will come into effect upon the execution of the Supplemental Trust Deed. As of the disclosure date, no pledge has been created over the equity shares of VEDL.
Previous Bond Issuances
Citicorp also acts as trustee for other bond issuances by Vedanta Resources Finance II plc, including:
- US$ 900 million 10.875% bonds due 2029 (issued September 17, 2024).
- US$ 300 million 10.875% bonds due 2029 (issued October 25, 2024).
- US$ 300 million 10.25% and US$ 500 million 11.25% bonds due 2028 and 2031 (issued December 3, 2024).
- US$ 550 million 9.475% and US$ 550 million 9.850% bonds due 2030 and 2033 (issued January 24, 2025).
Source: BSE