Hindalco arm Novelis raises $750 million via 5-year bonds
Hindalco Industries has raised $750 million (about Rs 6450 crore) by selling five-year bonds through a private placement outside of the US at 6.88%. Novelis intends to use the net proceeds from the offering to repay $738 million (about Rs 6346 crore) of outstanding borrowings under its revolving credit facility and to use any remaining net proceeds to fund cash on its balance sheet for general corporate purposes, the company said.
The US headquartered aluminium maker expects to close the bond placement on January 13. The bonds will be guaranteed by Novelis and certain subsidiaries of the company, the Aditya Birla owned company said in a stock market notice.
The private placement to non-US investors means that the bonds are exempt from any US Securities act, the company said. ET could not ascertain the investors or banks involved in this transaction.
Atlanta based Novelis supplies aluminium products to customers in the aerospace, automotive, beverage packaging and specialties industries throughout North America, Europe, Asia and South America. It had net sales of $16.2 billion in fiscal year 2024.
Earlier on Thursday, Novelis said it expects its third quarter Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) on an adjusted basis to be between $360 million to $370 million, lower than the $454 million it had reported during the same quarter last year.
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