Vedanta Resources Raises $300 Mn Via Tap Issue

New Delhi: Vedanta Resources, the parent firm of Mumbai-based mining conglomerate Vedanta Ltd, has raised $300 million by exercising the tap option on the existing bond issue. A tap issue is a procedure that allows companies to issue bonds or other short-term debt instruments from past issues. In a Singapore exchange filing Vedanta Resources Finance II PLC (VRF), a wholly-owned subsidiary of Vedanta Resources Ltd, said it has exercised a tap option on its September $900 million bond issuance, raising a further $300 million at a yield of 9.99 per cent, continuing its liquidity management exercise.

The new issuance received final orders of over $500 million, an oversubscription from existing and new investors. Sixty-seven per cent of the allottees were from the Asia Pacific (APAC) region, 26 per cent from Europe and the Middle East, and seven per cent from the Offshore United States.