Vedanta Resources discloses encumbrance on subsidiary shares for bonds

Vedanta Resources Limited (VRL) and its promoter group entities have disclosed the creation of encumbrance over equity shares of its listed Indian subsidiaries, including Vedanta Limited, Vedanta Oil and Gas Limited, and others. This disclosure, made under SEBI (SAST) Regulations, 2011, is in relation to the issuance of new US$400 million 'Tap Bonds' by Vedanta Resources Finance II PLC, a VRL subsidiary. The bonds comprise three series due in 2032, 2034, and 2037. While no direct pledge has been created, certain conditions within the bond terms and conditions are deemed to fall under the definition of 'encumbrance'. These conditions include restrictions on the promoter group entities' ability to create further encumbrances, dispose of shares, and a requirement for VRL to maintain at least 50.1% control over Vedanta Oil and Gas Limited. This follows previous similar disclosures for 'Original Bonds'.