Vedanta’s USD 1.2 bn 6% 2019 bond rose 1.8 points to 97.66 at 9:39am in Hong Kong, the highest since June 24, 2015, after investors approved merger plans

“The development is significantly credit positive, as Cairn India’s shareholders approval was the key obstacle,” Trung Nguyen, a senior credit analyst at Lucror Analytics says in a note today. “We expect the merger to clear the rest of the approvals easily by the end of the fiscal year”.

The 2019 bonds posted their biggest jump since July 25: Bloomberg data.

NOTE: Vedanta’s plans to create an Indian resources heavyweight to compete with the likes of BHP Billiton were boosted yesterday after shareholders in its oil unit, Cairn ndia agreed to a proposal to combine the two companies.

“Much of these positives have been baked into valuations” of Vedanta’s bonds, says Nicholas Yap, a credit strategist at MUFG Securities Asia.

"That said, the bonds continue to offer an attractive carry, particularly in the context of the current low global rates environment”

By Neha D’silva