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Novelis Aims to Raise $750 Mn through 5-Year Bonds

2025-01-13

Novelis Inc, a subsidiary of Hindalco Industries based in the United States, announced plans on Thursday to raise $750 million via bond issuance. The company aims to utilise the proceeds from this offering to repay $738 million of existing debt, with any remaining funds allocated to strengthening its balance sheet. The bond offering consists of $750 million in senior notes at an interest rate of 6.875 per cent, maturing in January 2030. This marks a $250 million increase from Novelis’ earlier announcement. As a leading provider of sustainable aluminium solutions, Novelis had reported a decline in net income, down 18 per cent to $128 million for the September quarter of the 2024-25 financial year, compared to $157 million in the same period the previous year.

Despite the fall in net income, Novelis’ second-quarter net sales saw a 4.5 per cent increase, reaching $4.295 billion, driven by higher aluminium prices and a 1 per cent rise in flat rolled product shipments to 945 kilotonnes.

Steve Fisher, President and CEO of Novelis, noted the company achieved record beverage packaging shipments during the quarter, helped by its global reach and overcoming the impact of a flooding-related disruption at its Sierre facility. Meanwhile, Devinder Ahuja, Executive VP and CFO, stressed the importance of prudent balance sheet management in the face of evolving market conditions.