Citicorp reveals encumbrance on Vedanta shares for $500m bonds

Citicorp International Limited has disclosed the creation of an encumbrance over equity shares of Vedanta Limited (VEDL) held by promoter group entities. This arrangement is tied to US$500,000,000 9.125% guaranteed senior bonds due 2032, issued by Vedanta Resources Finance II Plc, a subsidiary of Vedanta Resources Limited (VRL). The encumbrance involves Twin Star Holdings Limited, Welter Trading Limited, and Vedanta Holdings Mauritius II Limited, all VRL subsidiaries.

The disclosure, made on October 17, 2025, follows the execution of a principal trust deed on October 15, 2025, with a supplemental trust deed expected by October 31, 2025. This move ensures the promoter group entities comply with terms preventing further encumbrance or specific asset disposal without fulfilling bond conditions.

As of the disclosure date, the shares in the nature of encumbrance amount to 2,095,867,334 equity shares, representing 53.60% of both the total share/voting capital and the total diluted share/voting capital of Vedanta Limited. The creation of this encumbrance alters the promoter group's holdings, with no pledge created over equity shares as of the disclosure date.