Vedanta Resources, the UK-based parent of Vedanta Ltd, has raised $800 million through two offshore dollar bond issues.

The company, which intends to refinance outstanding debt due in 2028, will pay a coupon of 10.25 per cent on three-year and six-month bonds and 11.25 per cent on seven-year bonds, bankers said compared with the initial price guidance of 10.375 per cent and 11.375 per cent, respectively.

The notes also have call options.

The bond issues are the first by the Anil Agarwal-owned company with close links to India and were seen as an acid test for the issuer amid concerns that the Adani bribery scandal would make it hard for Indian companies to raise funds abroad.

After US federal prosecutors filed an indictment against Gautam Adani and other officials, therewere fears that bond issuances from Indian entities would have to wrestle with the problem of high coupon rates that would raise their borrowing costs.

Vedanta Resources Finance II PLC (VRF) said in a regulatory filing in Singapore that it had raised $800 million by issuing new bonds.

The float comprised two tranches of bonds — one with an aggregate principal amount of $300 million of 10.25 per cent bonds due in 2028, and the other for an aggregate principal amount of $500 million of 11.25 per cent bonds due in 2031.

Bids were received from existing as well as a new set of investors across Asia Pacific, Europe, West Asia and Africa (EMEA), and the US with more than 90 per cent participation from asset/fund managers in both tranches.