Vedanta Resources Limited (VRL) has disclosed the creation of an encumbrance on equity shares of Vedanta Limited (VEDL) held by its subsidiary, Vedanta Holdings Mauritius II Limited (VHMLII). This encumbrance relates to various guaranteed senior bonds issued by Vedanta Resources Finance II PLC. The obligations pertaining to VHMLII will come into effect from October 27, 2025, following the execution of supplemental trust deeds.
Details of Share Encumbrance
Vedanta Resources Limited (VRL) announced the creation of an encumbrance on equity shares of Vedanta Limited (VEDL), which are held by Vedanta Holdings Mauritius II Limited (VHMLII). This action is related to several series of guaranteed senior bonds issued by Vedanta Resources Finance II PLC. The announcement was made on October 29, 2025.
Bonds Involved
The encumbrance pertains to the following bonds:
- 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 (consolidated with the 2029 Bonds) issued on October 25, 2024.
- U.S.$ 300,000,000 10.25% Guaranteed Senior Bonds due 2028 issued on December 3, 2024.
- U.S.$ 500,000,000 11.25% Guaranteed Senior Bonds due 2031 issued on December 3, 2024.
- U.S.$ 550,000,000 9.475% Guaranteed Senior Bonds due 2030 issued on January 24, 2025.
- U.S.$ 550,000,000 9.850% Guaranteed Senior Bonds due 2033 issued on January 24, 2025.
Key Considerations
According to the terms and conditions of these bonds, VHMLII is subject to certain restrictions. These include limitations on creating encumbrances or security interests over its directly held assets unless specific conditions are met. VHMLII can only acquire or dispose of VEDL shares as specified. Also, following an Event of Default, VHMLII can only dispose of its assets as specified within the Trust Deeds. The obligations will be effective from October 27, 2025.
Source: BSE