Vedanta Ltd., the Indian resources conglomerate controlled by billionaire Anil Agarwal, plans to raise at least 10 billion rupees ($105 million) through local-currency bonds in the next few weeks, according to people familiar with the matter, as more companies tap the debt market amid signals interest rates may rise.
The planned notes will have maturity that could range between three years to seven years, the people said, asking not to be identified discussing private information. The proceeds will largely be used to refinance debt, they said, adding that the bankers participating are likely to be finalized soon.
It would be the conglomerate’s third domestic issuance since raising a total of 75.75 billion rupees through two bond sales in March. A representative at Vedanta didn’t immediately respond to an email seeking comment.
The deal pipeline would help boost the domestic bond market after a slow start this year as firms opted for bank loans to meet financing needs due to lower rates.
Indian companies have borrowed 7.7 trillion rupees via domestic bonds so far this year, down 7% from a year ago, according to data compiled by Bloomberg.
