27 May 2011
NOT FOR DISTRIBUTION IN THE UNITED STATES
VEDANTA RESOURCES PLC ANNOUNCES PRICING OF BOND OFFERING
LONDON, 27 May 2011 - Vedanta Resources plc ("Vedanta", LSE: VED) announced the pricing of the offering of bonds in the aggregate principal amount of US$1.65 billion. The bonds are being offered and sold in two tranches, consisting of (i) US$750 million aggregate principal amount of 6.75% Bonds due 2016 and (ii) US$900 million aggregate principal amount of 8.25% Bonds due 2021 (together, the "Bonds").
This is a landmark transaction for Vedanta, and Vedanta believes this represents one of the largest corporate bond issuances by an Indian group (other than financial institutions).
The Bonds are being offered and sold in a private offering to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended ("Securities Act"), and outside the United States under Regulation S under the Securities Act. The offering is expected to close on June 7, 2011, subject to customary closing conditions.
Barclays Capital, Citi, Credit Suisse, The Royal Bank of Scotland and Standard Chartered Bank (all appearing in alphabetical order) are acting as Joint Global Coordinators, Joint Lead Managers and Joint Bookrunners, Goldman Sachs International, J.P. Morgan and Morgan Stanley are acting as Joint Bookrunners, and UniCredit Capital Markets LLC is acting as Co-Manager.
The Bonds are rated "Ba3", upon completion of the acquisition of 40% stake in Cairn India (the "Acquisition"), or "Ba2" in the event the Acquisition does not proceed, by Moody's, "BB" by S&P , and "BB" by Fitch.
Vedanta has obtained in-principle approval for the listing of the Bonds on the Singapore Exchange Securities Trading Limited (the "SGX-ST"). Admission of the Bonds to the official list of the SGX-ST is not to be taken as an indication of the merits of the offering, Vedanta or the Bonds.
The Bonds have not been and will not be registered under the Securities Act, or any state securities laws of the United States, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws. Vedanta has no intent to register the Bonds in the United States or any other jurisdiction.
This press release is neither an offer to sell nor the solicitation of an offer to buy the Bonds and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision, suspension or withdrawal at any time by the assigning rating organisation.
The Bonds will only be offered to persons in the United Kingdom who (i) have professional experience in matters relating to investments falling within Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Financial Promotion Order"), (ii) are persons falling within Article 49(2)(a) to (d) ("high net worth companies, unincorporated associations etc") of the Financial Promotion Order, (iii) are outside the United Kingdom, or (iv) are persons to whom an invitation or inducement to engage in investment activity (within the meaning of section 21 of the Financial Services and Markets Act 2000) in connection with the issue or sale of any securities may otherwise lawfully be communicated or caused to be communicated (all such persons together being referred to as "relevant persons"). This document is directed only at relevant persons and must not be acted on or relied on by persons who are not relevant persons. Any investment or investment activity to which this document relates is available only to relevant persons and will be engaged in only with relevant persons.
For further information, please contact:
Senior Vice President - Investor Relations
Vedanta Resources plc
Tel: +44 20 7659 4732 / +91 22 6646 1531
Tel: +44 20 7251 3801
About Vedanta Resources plc
Vedanta Resources plc ("Vedanta") is a London listed FTSE 100 diversified metals and mining major. The group produces aluminium, copper, zinc, lead, silver, iron ore and commercial energy. Vedanta has operations in India, Zambia, Namibia, South Africa, Ireland and Australia and a strong organic growth pipeline of projects. With an empowered talent pool of 31,000 employees globally, Vedanta places strong emphasis on partnering with all its stakeholders based on the core values of entrepreneurship, excellence, trust, inclusiveness and growth. For more information, please visit:
This press release contains "forward-looking statements" - that is, statements related to future, not past, events. In this context, forward-looking statements often address our expected future business and financial performance, and often contain words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should" or "will." Forward-looking statements by their nature address matters that are, to different degrees, uncertain. For us, uncertainties arise from the behaviour of financial and metals markets including the London Metal Exchange, fluctuations in interest and or exchange rates and metal prices; from future integration of acquired businesses; and from numerous other matters of national, regional and global scale, including those of a political, economic, business, competitive or regulatory nature. These uncertainties may cause our actual future results to be materially different that those expressed in our forward-looking statements. We do not undertake to update our forward-looking statements.