Bond Market News

Vedanta Resources is said to have received ~$325mn in for 2022-23 as part of the brand fees that it charges its subsidiaries. The brand fee coupled with dividends from its subsidiaries are said to have added to the parent company’s ability to pay its debts due in May and June. Vedanta Resources had raised the brand fee to 2% of the turnover for its Indian businesses in 2021 after initially charging 0.75% prior to that. Charging such fees to subsidiaries is not uncommon in India as Hindustan Unilever and Tata Sons also charge them. Since March, Vedanta Resources has reduced its gross debt to $6.4bn from $7.8bn and plans to reduce it further ultimately taking it to zero.

Vedanta’s dollar bonds were trading steady with its 13.875% 2024s at 91.5 cents on the dollar, yielding 29.5%.

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