According to the letter to bondholders, the company stated that “the average maturity of its debt portfolio is now well over four years, and it has reduced its weighted average interest expense to single digits, reflecting a stronger, more resilient capital structure.”
The company said it has “completed a $500 million bond offering, with the proceeds used to repay near-term obligations, including a $550 million private credit facility (PCF), in line with its deleveraging roadmap.”
As a result, the Group now has no material maturities until FY27, ensuring a balanced liability structure, the Group said.
The Group maintains robust liquidity, supported by dividend inflows from operating subsidiaries and healthy free cash flow generation, the company added.
The company has secured a $500 million term loan with a consortium of leading global and Indian banks. It has a long-term borrowing facility with undrawn balances of $682 million. Dividend inflows from operating subsidiaries and healthy free cash flow further support robust liquidity, Vedanta Resources said. Operationally, Vedanta’s core zinc, oil and gas, aluminum and energy businesses continue to deliver strong EBITDA and cash flows. Commodity prices, the company noted, have remained resilient despite disruptions to global trade, supporting profitability.
The ongoing demerger of Vedanta Limited into five independent sector-specific entities is progressing as planned, with the aim of unlocking value, increasing transparency and enabling sharper capital allocation, Vedanta Resources said.
The company reaffirmed its commitment to financial discipline and stated that it will continue to meet all debt obligations and continue its deleveraging journey through internal build-out, strategic refinancing and capital optimization.
“Your continued trust and support have been instrumental in making these results possible,” Vedanta said in the letter, emphasizing disciplined capital management and long-term value creation.
Vedanta Resources has reduced its debt by over $4 billion since FY22, with total gross debt falling from $9.1 billion in fiscal 2022 to $4.8 billion in June 2025.
The company has also focused on consolidating its debt, which has helped create a robust capital structure, giving it strong access to capital markets across the group and longer-dated issuances.
As part of this, it has diversified its credit profile through a mix of bonds and bank loans, while adding new banks to its capital structure.
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