Vedanta bond subscribed 3 times

Metal and mining major Vedanta Resources Plc today said that its debut issue of $500 million in a global dollar bond offering has been oversubscribed by more than three times.

The group plans to use the freshly raised funds for its $2.2 billion growth plan that will focus on all its investments in India.

A senior Vedanta executive said, "The money will be used to fund all our greenfield and brownfield projects in the country."

Vedanta holds interests in major metal and mining companies such as Sterlite Industries, Bharat Aluminium Ltd, Madras Aluminium, and Hindustan Zinc Ltd.

Copper producer Sterlite Industries' expansion to 300,000 tonne per annum from the 180,000 tonne per tonne at a cost of $100 million is already completed and awaiting environment clearance.

Hindustan Zinc Ltd is also undergoing a $300 million expansion in the next one year. Balco will also be expanding its capacity, through two large projects, to 350,000 tonne from the present level of 100,000 tonne per annum at a cost of $800-$900 million.

"We are also undertaking a $800-900 million project to put a 1-1.4 million tonne per annum alumina green field projects in Orissa," said the executive.

Vedanta through its IPO last year had raised $800 million. Apart the recent bond issue that was closed today, the company is also in the process of raising rupee debts from institutions, apart from the internal accruals to fund its $2.2 billion expansion plans. The bond offering that concluded today consists of 6 5/8 per cent notes, due February 2010.

Vedanta Resources plc is a London Stock Exchange listed and FTSE 250 metals and mining major with interests in aluminium, copper, silver and lead with operations in India, Australia and Africa.