Billionaire Anil Agarwal's commodities giant has slashed net debt by $2 billion in the current financial year as it seeks to soothe investor concern over its liquidity and ability to repay upcoming obligations.
Vedanta Resources Ltd. has achieved half of its three-year planned reduction commitment of $4 billion in the first year, the London-based company said in an exchange filing. It will continue to deleverage from net debt of $7.7 billion in the next two financial years, it said.
The move comes after S&P Global Ratings last week flagged the company’s debt scores may “come under pressure” if it’s unable to raise $2 billion and/or sell its international zinc assets. In the absence of a significant fundraising, Vedanta Resources will be left with very little cash, the assessor said, adding that external funding “critical” for debt maturities after September.
The company plans to cover half of next financial year’s liquidity requirements internally and the rest through refinancing, according to the statement. The commodities firm is delivering healthy cash flows powered by robust Indian consumption, it said.
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VEDANTA RESOURCES LIMITED
Vedanta Resources Limited is a globally diversified natural resources company. We extract and process minerals, oil and gas, engage more than 65,000 employees and contractors, primarily in India, Africa, Ireland and Australia.
Our products are sold worldwide; we are headquartered in London, United Kingdom. Vedanta Resources Limited is the holding company for Vedanta Limited and Gondola Copper Mines, which in turn have multiple subsidiaries. We are run by a unified board and management.
Our corporate goal is to create long-term shareholder value through research, discovery, acquisition, sustainable development and utilization of natural resources. We do this through our diversified portfolio of large, long-life and low-cost assets across the globe. We are among the top producers of major commodities, including zinc-lead-silver, iron ore, steel, copper, aluminum, oil and gas.
Read more about our leadership and journey to becoming a global unit; learn about our corporate governance and sustainable development principles that are crucial to the way we conduct business.
Who We Are
Vedanta Resources Limited is a globally diversified Natural Resources Company with interests in zinc-lead-silver, iron ore, Steel, Copper, Aluminum, Power, Oil and Gas.
Our dynamic portfolio follows a history of consistent geological discovery, technological advancement and sustainable development. With a business model focused on growth, expansion and value creation for our shareholders, positive impact on the community, we operate in and leave a legacy of pride.
Operating responsibly and ethically is an integral part of Vedanta’s core values. We deliver on our commitments to all internal and external stakeholders by demonstrating these values through our actions, processes, systems and interactions. We constantly learn and develop; and endeavor to improve our operations. We are fully committed to working with integrity and have upheld ‘uncompromising business ethics’. While our business has expanded over the last 3 decades into many locations around the world, our operations have positively impacted the communities we operate in.
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