MUMBAI — Vedanta Resources Ltd. is preparing a $5.2 billion refinancing of U.S. dollar bonds and loans following recent credit rating upgrades, according to people familiar with the matter and company statements.
The India-focused mining and metals conglomerate, controlled by billionaire Anil Agarwal, plans to replace higher-cost debt with new financing at improved terms, Bloomberg News reported on Tuesday. The move comes after upgrades from major rating agencies in recent months.
Part of the proceeds will refinance about $3.6 billion of bonds maturing between 2028 and 2033, along with other loans, sources said. The refinancing is expected to lower overall borrowing costs for the holding company.
Fitch Ratings upgraded Vedanta Resources to 'BB-' from 'B+' in April 2026, citing improved financial discipline and smoother debt maturities. S&P Global Ratings and Moody's also raised their assessments last month, reflecting stronger finances and reduced refinancing risks.
The company has been actively managing its debt profile. As of early 2026, Vedanta Resources' holding company debt stood at around $5.3 billion to $5.5 billion, excluding certain inter-company loans, according to Fitch.
Vedanta Resources operates through subsidiaries including Vedanta Ltd., with interests in zinc, oil and gas, aluminum, copper and iron ore. The group has faced periodic liquidity pressures at the holding company level in recent years but has taken steps to extend maturities and improve access to funding.
A company spokesperson declined to comment on the specific refinancing plans when contacted. Details on the structure, timing and participating banks remain unclear, with the transaction still in preparation.
"Improved financial discipline and proactive refinancing have helped strengthen our position," a senior executive familiar with the strategy said in a recent interview with local media, though the comment was not directly tied to the latest deal.
The refinancing follows broader efforts by Vedanta to optimize its capital structure amid volatile commodity prices and global market conditions. Net debt levels have reportedly declined in recent periods, though exact current figures were not immediately available.
Market reaction to the news was positive, with shares of Vedanta Ltd. rising on Tuesday. As of June 10, 2026, the refinancing process is ongoing, with no final terms or completion timeline announced. Further details on the deal are expected in the coming weeks, according to people familiar with the preparations.
