Anil Agarwal’s ₹43,500 Crore Refinancing Masterstroke, Vedanta Targets 5.2 Billion Dollar Debt Overhaul As Financial Strength Improves
· Free Press Journal
Mumbai: Vedanta Resources Ltd, the UK-based parent company of Vedanta Group, is preparing a major refinancing exercise worth around USD 5.2 billion, or nearly Rs 43,500 crore.
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The move marks a significant change for a company that was once under pressure due to its large debt burden. Today, Vedanta is focusing on replacing expensive borrowings with lower-cost loans to improve its financial position.
In simple terms, the company wants to repay old high-interest debt and replace it with cheaper funding.
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According to Bloomberg, around USD 3.6 billion will be used to refinance bonds maturing between 2028 and 2033.
Another USD 1.6 billion will be used to replace loans that start becoming due from 2028.
The objective is not just to repay debt but to manage future obligations more efficiently and reduce financial pressure in the coming years.
Credit Rating Agencies Turn Positive
A major reason behind this refinancing plan is the improvement in Vedanta’s financial profile.
Vedanta Net Profit Surges 89% To ₹9,352 Crore In Q4 FY26, Revenue Climbs To ₹24,609 CroreIn February 2025, S&P Global upgraded Vedanta Resources’ rating from B to B+. The company was also removed from CreditWatch in April 2025.
Moody’s also acknowledged the improvement in Vedanta’s liquidity position and financial stability.
These rating upgrades have increased confidence among lenders and investors.
Debt Reduction Efforts Show Results
Vedanta has worked aggressively to reduce debt over the past few years.
Its total debt stood at about USD 9.1 billion in 2022 and increased to nearly USD 12.35 billion by March 2024. However, the company later focused on debt reduction.
By June 2025, total debt had fallen to around USD 4.7 billion, showing a sharp improvement in its balance sheet.
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The company is also targeting a reduction in borrowing costs.
Vedanta wants its average interest cost to fall to around 7 percent. Last year, it refinanced nearly USD 550 million of high-cost debt, helping reduce borrowing costs by around 160 basis points.
The average debt maturity has also improved to 4.5 years by December 2025, compared with only 1.3 years two years earlier.
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Vedanta’s planned demerger, expected to begin in June 2026, is another important part of its strategy.
The restructuring aims to align cash flows and liabilities across businesses more effectively.
Challenges remain, particularly around FY30 liabilities, but stronger earnings, improved cash flows and better debt management suggest Vedanta is entering a new phase focused on financial stability rather than debt stress.