Deals of the Year 2011: Vedanta Resources
Euromoney, is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024
Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Deals of the Year 2011: Vedanta Resources

Vedanta Resources
Value $6 billion acquisition financing for Cairn India with $1.65 billion bond
Bookrunners Barclays, Citi, Credit Suisse, Goldman Sachs, JPMorgan, Morgan Stanley, RBS, Standard Chartered
return to the Asian Deals of the Year index

Despite challenges in credit markets, there was still room for innovation and scale in Asian high yield, with the standout deal coming from India. This came as part of Vedanta Resources’ takeover of a stake in Cairn India, a process that began in 2010 and required a swift raising of $6 billion of capital. This started out as a $3.5 billion term loan, a $1.5 billion bridge-to-bond deal and $1 billion bridge-to-equity. By the time it became clear that the deal was going to go through, Vedanta sought to take out the bridge-to-bond bit, and did so with a $1.65 billion bond that became India’s biggest corporate bond to date, and the largest true corporate – that is, not a government body – from anywhere in south or southeast Asia.

The numbers themselves are impressive: a five-year $750 million bond at 6.75%

Gift this article