London: Mining conglomerate Vedanta Resources on Friday said it will buy-back bonds worth about Rs 2,314 crore.
The London-listed company in a regulatory filing said, “Prior to the commencement of its close period on April 1, 2016, it entered into irrevocable arrangements with JP Morgan Securities plc to commence a buy-back programme to repurchase, within certain pre-set parameters, on its behalf.”
The firm announced plans to repurchase securities in two tranches.
It said it will repurchase “up to dollar 148.6 million (up to 20 per cent) of the dollar 743 million outstanding principal amount of the 6.75 per cent bonds due 2016 of Vedanta Resources plc”.
The firm added it will also acquire “up to dollar 200 million of the dollar 582 million outstanding principal amount of the 5.50 per cent.”
These are guaranteed convertible bonds due 2016 of Vedanta Resources Jersey Ltd, it said.
“These arrangements will take effect on April 4, 2016. In accordance with terms and conditions of the 2016 bonds, the purchased bonds may either be canceled or held until their maturity date,” Vedanta Resources said.
In accordance with the terms and conditions of the convertible bonds, the purchased convertible bonds may either be surrendered for cancellation or held until their maturity date, it added.
Vedanta said the bond purchases will be financed through currently available funds and from funds to be made available following part-repayment by Vedanta Ltd of an inter company loan between the company and Vedanta Ltd.
“JP Morgan will make trading decisions in relation to the purchase of the bonds independently of, and uninfluenced by, each of company and Vedanta Resources Jersey Ltd,” it said.
Ahead of the commencement of its close period, Vedanta said adding its lending banks have consented to certain changes requested by the firm to its covenants under the terms of the relevant debt facilities effective from March 31, 2016 until the period ending 30 September 2018.
“This will ensure compliance by the company with its covenants relating to all facilities for the testing period ending March 31, 2016,” it added.
In February, the firm led by NRI billionaire Anil Agarwal had announced repurchase of bonds worth up to dollar 250 million (about Rs 1,700 crore) of its outstanding dollar 1.25 billion convertible bonds due this year.
A month before, the metals major had announced plans to repurchase in cash bonds worth dollar 500 million (about Rs 3,300 crore) out of its outstanding dollar 1.13 billion convertible bonds due in July this year, but later trimmed the offer to dollar 227.40 million.