Vedanta Resources postpones planned dollar bond offering, sources say

Vedanta Resources has postponed its planned issue of dollar bonds on concerns that U.S. prosecutors' allegations against Adani group firms could push up borrowing costs for Indian firms, two sources aware of the matter said on Thursday.

Earlier in the day, Adani Green withdrew a planned issue of dollar bonds.

Vedanta decided to push fund raising plans through the dollar bond route and would likely prefer to wait and watch till the current volatility cools down and borrowing costs are cheaper, said a source aware of the development.

The company did not reply to a Reuters email seeking comment.

The firm had planned to raise funds via dollar denominated bonds maturing in three years and six months.

Citigroup, Barclays, Deutsche Bank, and Standard Chartered Bank are among the joint global coordinators and lead managers. None of the lead managers responded to a Reuters request for comment.

Indian billionaire Gautam Adani was indicted by U.S. prosecutors for his alleged role in a $265 million scheme to bribe Indian officials, plunging his conglomerate deep into crisis for the second time in two years.

Adani Green Energy said in a statement that in light of these developments, subsidiaries have decided not to proceed with the proposed U.S. dollar denominated bond offerings.

Shares of group companies plunged, while dollar bonds of these companies also took a beating.