The Vedanta board approved a $2,100 billion NCD financing.

Vedanta Resources (VRL), a mining giant with headquarters in London, has authorised funding up to Rs 2,100 crore through the issue of non-convertible debentures (NCDs) through private placements.

The business stated in a stock market report that the NCDs will be raised in one or more segments. 

The action is being taken at a time when its parent company VRL is looking to raise money to reduce debt.

Vedanta authorised its sixth interim dividend, totaling Rs 7,621 crore for FY23 at Rs 20.50 per share earlier in March. As a result, the total amount paid out in dividends for FY23 was about Rs 37,733 crore.

Crisil Ratings changed the outlook on Vedanta's long-term bank facilities and non-convertible debt (NCDs) from "stable" to "negative" on March 29 due to increased financial leverage and less financial flexibility.

Crisil retained its 'AA' rating while downgrading the ratings of the Rs 6,444 crore and Rs 3,000 NCDs to 'negative'. It confirmed a 'A1+' rating for short-term loan facilities and commercial paper worth Rs 10,000 crore.

With significant near-term maturities of $1.7 billion in the first quarter of fiscal 2024, VRL has annual debt maturities of nearly $3 billion in each of the fiscal years 2024 and 2025.

The business said it is in talks with lenders on refinancing future maturities for the first quarter of fiscal 2024, and that the process should be finished by the end of March or the beginning of April 2023.