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

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

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.

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.

Next Story
Infrastructure Transport

Bengaluru Unveils Rs 1,200 Bn Infra Upgrade Plan

Bengaluru is set to receive a massive infrastructure boost worth Rs 1,200 billion under new projects planned by the Karnataka government to enhance urban mobility and connectivity. The initiative includes the expansion of the city’s metro network, construction of tunnel roads, elevated corridors, and 500 km of white-topping works to improve road durability. The Bruhat Bengaluru Mahanagara Palike (BBMP) and Bengaluru Metro Rail Corporation Limited (BMRCL) will jointly execute the projects. Key projects include tunnel roads between Hebbal and Mekhri Circle, 25 new signal-free corridors, and ..

Next Story
Infrastructure Transport

Cochin Shipyard delivers first indigenous ASW vessel ‘Mahe’ to Navy

Cochin Shipyard Limited (CSL) has delivered INS Mahe, the first indigenous Anti-Submarine Warfare Shallow Water Craft (ASW SWC), to the Indian Navy. The vessel is part of an eight-ship series being constructed under the Navy’s “Atmanirbhar Bharat” initiative to strengthen coastal defence capabilities. Designed and built entirely in India, Mahe features advanced sensors and weapon systems for detecting and neutralising underwater threats in coastal waters. The vessel underwent extensive sea trials before delivery, demonstrating high performance and manoeuvrability. This milestone reinfo..

Next Story
Infrastructure Urban

Vedanta Group to invest Rs 1,000 billion more in Odisha projects

Vedanta Group has announced an additional investment of Rs 1,000 billion in Odisha to expand its operations across metals, energy, and downstream industries. Anil Agarwal, Chairman, made the announcement during the third edition of the Make in Odisha conclave, highlighting the state’s pivotal role in India’s industrial growth.The investment will focus on strengthening Vedanta’s aluminium and copper businesses, establishing new value-added facilities, and boosting employment in the region. The company already operates large-scale plants in Jharsuguda and Lanjigarh, contributing significan..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?