Holding companies controlled by energy-to-mining tycoon Anil Agarwal face the highest debt repayments in several years just as credit rating firms step up warnings.
Vedanta Ltd holding companies Vedanta Resources Ltd and Volcan Investments Cyprus Ltd must repay a combined $1.17 billion next year. That’s the most since 2017, according to data compiled by Bloomberg.
A Vedanta Resources bond principal payment of $670 million due in June. Those notes and others from the company rallied in recent days after
Hindustan Zinc Ltd said it will pay 90 billion rupees ($1.2 billion) in dividends to its shareholders, the biggest of which is Vedanta Ltd.
Investors’ focus has been riveted on how Vedanta Resources will deal with its debt after opposition from minority shareholders derailed a delisting of its Indian unit Vedanta Ltd two weeks ago. The privatisation plan had intended to give the parent greater access to profits generated by operating companies and allay concerns about the debt load.
Its flop adds to broader strains after the pandemic dragged down demand for commodities.
Progress for the company in refinancing debt will be important over the next couple of quarters, S&P Global Ratings analyst Neel Gopalakrishnan said.
Debt maturities for the Vedanta group including the parent entity over the next 12 months are around $2 billion, a Vedanta spokesman said, referring to the period from October 2020 to October 2021.