Vedanta Resources encumbers VEDL shares for $400M Tap Bonds

Vedanta Resources Limited (VRL), the promoter of Vedanta Ltd (VEDL) and its Indian subsidiaries, has disclosed reasons for encumbrance on shares. This disclosure is in relation to the issuance of US$400 million in new 'Tap Bonds' by Vedanta Resources Finance II PLC, a VRL subsidiary. The Tap Bonds include US$125 million due 2032, US$50 million due 2034, and US$225 million due 2037. The encumbrance applies to equity shares of VEDL, Vedanta Power, Vedanta Oil and Gas, Vedanta Iron and Steel, and Vedanta Aluminium Metal, held by VRL's subsidiaries. The disclosure, made under SEBI (SAST) Regulations, 2011, clarifies that while no direct pledge has been created, certain conditions within the bond terms constitute an 'encumbrance'. VRL and its group entities are required to maintain at least 50.1% control over VEDL.