Vedanta Resources sets dollar bond guidance-source

HONG KONG, June 24 (Reuters) - India-focused mining group Vedanta Resources (VED.L) set guidance for a two-tranche dollar bond issuance, a source involved in the deal said on Tuesday.

London-listed Vedanta is selling a 5.5-year tranche at a yield of around 8.25 percent and a 10-year tranche at a yield of around 9 percent, said the source, who was not authorised to be identified while discussing the transaction.

Vedanta is aiming to launch and price the deal as early as later on Tuesday during U.S. hours, said the source, adding that no size had been provided.

But an investor who is being briefed on the deal told Reuters on Monday the mining firm was seeking to raise up to $2 billion in the bond sale, and was considering an additional seven-year euro-denominated tranche. [ID:nHKG243147]

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 investment-grade level.

JPMorgan (JPM.N) and Morgan Stanley (MS.N) are the joint global coordinators and lead managers for Vedanta's bond sale. Barclays Capital, Citigroup (C.N) and Deutsche Bank (DBKGn.DE) will act as co-lead managers. (Reporting by Rafael Nam; Editing by Jonathan Hopfner)