Vedanta subsidiary pledges shares to strengthen bond guarantees

On October 29, 2025, Vedanta Resources Limited disclosed the creation of encumbrance over equity shares of Vedanta Limited held by its subsidiary, Vedanta Holdings Mauritius II Limited, under the Takeover Regulations. This action relates to a series of bonds issued by Vedanta Resources Finance II PLC, a Vedanta Resources Limited subsidiary, including $900 million 10.875% guaranteed senior bonds due 2029 and $300 million 10.875% guaranteed senior bonds due 2029 (tap bonds), among others, totaling several billion dollars across different maturities.

The encumbrance stems from supplemental trust deeds executed on October 27, 2025, which incorporate Vedanta Holdings Mauritius II Limited as a subsidiary guarantor for Principal Trust Deeds 1, 2, and 3. These deeds relate to bonds issued between September 2024 and January 2025, with Citicorp International Limited acting as trustee. As per the bond terms, Vedanta Holdings Mauritius II Limited faces restrictions on creating further encumbrances or disposing of Vedanta Limited shares without meeting specific conditions.

This disclosure clarifies that the encumbrance is in addition to previously disclosed arrangements, with no pledge yet created over Vedanta Limited's equity shares by Vedanta Holdings Mauritius II Limited as of the reporting date. The move supports the repayment of outstanding bonds and associated transaction costs across the various bond series.