Vedanta Resources to deleverage debt by USD 3 billion over 3 years

Vedanta Resources is a diversified conglomerate with operations in various sectors such as mining, oil and gas, power generation, and aluminum production. The company has recently announced its plans to deleverage its debt by USD 3 billion over the next three years.

To achieve this goal, Vedanta Resources will manage the financial year 2025 maturities of USD 1,100 million and close to USD 750 million of interest servicing through a combination of brand fees, dividends from operating companies, asset monetisation, and other strategic initiatives.

Brand fees refer to the revenue generated by licensing the use of Vedanta Resources' brands to third-party companies. Dividends from operating companies are payments made by subsidiary companies to their parent company as a share of their profits. Asset monetisation involves selling non-core assets such as real estate or investments to raise cash. Other strategic initiatives may include restructuring debt, issuing new shares, or exploring partnerships with other companies.

By managing its debt through these various means, Vedanta Resources aims to reduce its financial leverage and improve its overall financial health. This can help the company to invest in new projects, pay dividends to shareholders, and generate long-term value for its stakeholders.