India's Vedanta lines up FY's first rupee debt sale, bankers say
MUMBAI - India's Vedanta is preparing to launch its first rupee bond of the year before the central bank's monetary policy decision early next month, two merchant bankers said on Friday.
The miner plans to raise 35-billion rupees ($364.75-million) through three-year bonds and could pay a coupon of about 8.75%, the bankers said.
The bankers requested anonymity as they are not authorised to speak to the media, while the company did not reply to a Reuters email seeking comment outside business hours.
"Vedanta has tied up with some foreign banks and mutual funds, and the issue should be completed in the next three-four days," one of the bankers mentioned above said.
The bonds are rated "AA+" by Icra and Crisil.
The coupon will be stepped up by 50 basis points if the rating is downgraded from "AA+" to "AA–", and additional 25 bps for each notch below "AA–", the bankers said.
In March, the company raised 25.75 billion rupees through three-year bonds at an annual coupon of 8.95%.
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