This will be devoted to a major, aggressive, expansion of Sesa's operations in the "sunshine state" of Goa, and elsewhere in India - to a massive 50 million tonnes a year.
In the past fortnight, Vedanta, through three of its “promotional” subsidiaries (Westglobe, Finstar, Twin Star),increased its stake in Sesa Goa to 57.1%
Goldman Sachs and Morgan Stanley are book runners for the bond issue.
Below find an interview earlier today with PK Mukherjee, Sesa's "big nob" in Goa.
You might find it savagely ironic that this video was screened on NDTV, barely 36 hours after the disaster in which at least 25 workers - and possibly as many as a hundred – workers died, while constructing Vedanta’s Korba power plant in Chhattisgarh.
[Financial note: Earlier this year, Vedanta said it was raising its 53.1% stake in Sesa Goa to around 55%, using existing funds. Sterlite's US$1 billion convertible US bond (ADR) issue in June 2009 was designed for unspecified acquisitions and other capital expenditure. Vedanta announced that its takeover of Goa-based mining company, V S Dempo & Co Ltd, in early June, would be funded from existing cash balance [Dow Jones, 12 June 2009]
Watch the NDTV video:
“Sesa Goa plans to raise $500 million via FCCB. PK Mukherjee, the MD, said the company has huge growth plans and it is looking to expand it capacity to 50 million tones in two to three years.”