LONDON (ShareCast) - Vedanta Resources (LSE: VED.L - news) said Friday that the previously announced $1bn convertible bonds due 2016
has been increased to $1.25bn following strong investor interest.
The convertible bonds will pay a coupon of 5.50%. The conversion price has been set at $36.48, representing a premium of 35% to the volume weighted average price.
Earlier today, the Indian refiner and miner announced it is to raise $1bn through an issue of convertible bonds and said its size could be further increased by up to $250m.
Vedanta said the cash will be used to support its organic growth pipeline, increase its ownership interest in its subsidiaries and for general corporate purposes. The net proceeds will also provide the group with additional flexibility to finance acquisitions, it added.
Meanwhile, Vedanta's majority-owned Sesa Goa has acquired the Goan iron ore assets of the Dempo mining group for the equivalent of $368m.
The transaction will give Sesa Goa rights to mineable reserves and resources estimated at 70m tonnes of iron ore in the Indian state. The assets include processing plants, barges, jetties, transhippers and loading capacities. Production in the year to March 31 totalled 3.94m tonnes of iron ore.
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