Commentary & Deal Flow

IPTs: 6WAL5.35: 7.25%a 8WAL7.1: 7.625%a 11WAL9.75: 8.00%a

• Issuer: Vedanta Resources Finance II plc
• Parent Guarantor: Vedanta Resources Limited
• Subsidiary Guarantors: Twin Star Holdings Ltd., Welter Trading Limited and Vedanta Holdings Mauritius II Limited
• Parent Guarantor Ratings: BB/Stable (Fitch), Ba3/Positive (Moody's), BB/Stable (S&P)
• Expected Issue Ratings: BB/Ba3/BB- (Fitch/Moody's/S&P)
• Status: Fixed Rate Senior Guaranteed Bonds
• Format: 144A / Reg S
• Coupon: Fixed Rate, Semi-annual
• Security: First ranking charge over (x) the receivables and other rights under the Brand Fee Agreements and (y) the Receivables Account, in each case, held by Vedanta Resources Investments Limited ("VRIL"), by no later than ninety (90) days after the earlier of (i) the date of repayment of all Existing Loans and all Existing Notes and (ii) the date of repayment of all Existing Loans and the receipt of the Requisite Consents.
• Size: US$ Benchmark
• Ranking: Senior Unsecured
• Joint Global Coordinators and Managers: Barclays, Citigroup (B&D), Deutsche Bank, First Abu Dhabi Bank, J.P. Morgan, Mashreq, SMBC Nikko Securities (Hong Kong) Limited and Standard Chartered Bank
• Maturity Date:
• • 6WAL5.35: 13-Jul-32
  • 8WAL7.1: 13-Jul-34
  • 11WAL9.75: 13-Jul-37
• Call Premium Structure:
• • 6WAL5.35: Post Yr 2 @ Par + 50% Coupon; Post Yr 3 @ Par + 25% Coupon; Post Yr 4 @ Par
  • 8WAL7.1: Post Yr 3 @ Par + 50% Coupon; Post Yr 4 @ Par + 25% Coupon; Post Yr 5 @ Par
  • 11WAL9.75: Post Yr 5 @ Par + 50% Coupon; Post Yr 6 @ Par + 25% Coupon; Post Yr 7 @ Par
• Indicative Amortization Schedule:
• • 6WAL5.35: Yr 4.5: 20.00%; Yr 5.0: 20.00%; Yr 5.5: 30.00%; Yr 6.0: 30.00%
  • 8WAL7.1: Yr 5.5: 5.00%; Yr 6.0: 5.00%; Yr 6.5: 22.50%; Yr 7.0: 22.50%; Yr 7.5: 22.50%; Yr 8.0: 22.50%
  • 11WAL9.75: Yr 8.5: 16.67%; Yr 9.0: 16.67%; Yr 9.5: 16.67%; Yr 10.0: 16.67%; Yr 10.5: 16.67%; Yr 11.0: 16.67%
• Optional Redemption: Up to 10% of outstanding amount per bond per year @ 103.00%
• Status of the Bonds and Guarantees: The Bonds will constitute direct, unconditional, unsubordinated and secured obligations of the Issuer and shall at all times rank pari passu and without any preference among themselves.
• Use of Proceeds: Issuer intends to use the proceeds from this offering to repay (including by way of tender offers, redemptions, or otherwise) the outstanding 2028 Bonds, 2029 Bonds, 2030 Bonds, 2031 Bonds, 2032 Bonds and 2033 Bonds, to pay any transaction costs in connection therewith and to service our other debts
• Covenants:
• • Limitation on Borrowings: Parent Guarantor and its subsidiaries FCCR ≥ 2.25x (till 31 March 2027); FCCR ≥ 2.50x (thereafter); Subsidiary Guarantors: Attributable Debt / EBITDA of 5.5x; Either of: Debt cap excluding inter-company loans of US$5.6bn (against a 51.93% stake held by subsidiary guarantors); Consolidated Parent Guarantor FCCR of 3.5x
  • Restricted Payments: 50% of Net Income (calculated as Brand fees + Dividends – Holdco Net Interest expense – administrative expenses); Increases to 100% of net income, if consolidated FCCR ≥ 3.5x
• Other Covenants: Limitation on distributions of net proceeds from asset sales; Change of Control
• Denominations: US$200,000 x US$1,000
• Listing: SGX-ST
• Governing Law: English law
• Timing: Today's business
• Settlement Date: 13-Jul-26