India-focused mining group Vedanta Resources has initial plans to raise up to $2 billion in a multi-tranche, multi-currency bond sale this week, an investor who is being briefed on the sale said on Monday.

The London-listed resources firm is considering issuing a 5.5 year tranche yielding in the low-8-percent-range and a 10-year tranche yielding in the high-8-percent-range, the source added, citing talk with the lead managers for the bond sale.

Vedanta may also consider an additional seven-year euro tranche, the source said.

All the talks at this stage are very informal and very initial, said the source, who declined to be identified because he was not authorised to talk to the media about the sale.

Vedanta could announce guidance and further details as early as Monday during U.S. hours, said a separate source who is involved in the sale but who declined to be identified.

The mining group last week sent a term sheet to investors announcing a potential multi-tranche dollar debt transaction.

A unit of Vedanta, Sterlite Industries , said last month it would buy the operating assets of bankrupt miner Asarco in an all-cash $2.6 billion deal, in what would be India's largest outbound M&A deal so far in 2008.

The proposed bond sale also comes after Vedanta obtained financing for a $1 billion 4.75 year loan to refinance debt related to its purchase of a controlling 51 percent stake in Indian mining firm Sesa Goa from Japan's Mitsui & Co <8031.T>, Reuters' Basis Point has reported.

Vedanta's proposed debt issuance has been rated BB by Standard & Poor's (S&P) and Ba1 by Moody's, both just a step below the investment-grade level.

The transaction comes after two high-yield rated debt sales from Asia have been shelved this year, raising doubts about whether investors are ready for junk-rated issuance.

Indonesian energy and construction firm Truba Alam postponed in May a bond sale of up to $150 million in three-year bonds despite offering yields of 17-18 percent.

Trade and Development Bank of Mongolia postponed this month its $100 million sale that was being offered at yields of 11.5-11.75 percent.

Vedanta is being pitched as issuer likely to get upgraded soon, the investor source told Reuters, and hence the issue ought to be considered in the lower rung of investment grade.

S&P raised its outlook on Vedanta to positive earlier this month citing improving financial fundamentals and increased clarity on funding commitments.

The yields being offered are in line with the 8.5 percent coupon that Singapore-listed commodities firm Noble Group paid in May for a $500 million sale of five-year bonds. Noble had identical ratings to Vedanta from S&P and Moody's.

JPMorgan and Morgan Stanley are the joint global coordinators and lead managers for Vedanta's bond sale. Barclays Capital, Citigroup and Deutsche Bank will act as co-lead managers. (Reporting by Rafael Nam; Editing by Lincoln Feast)

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