Novelis Secures $750 Million in Bond Sale at 6.88% Interest

10 Jan 2025 CW Team

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.

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, 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. The company is expected to report EBITDA per tonne between $400 to $407, which is also lower than the $499 figure it reported last year. Hindalco’s wholly-owned subsidiary had posted an 18% year-on-year drop in its net income in the second quarter ended September 2025 to $128 million. after the company’s wholly-owned subsidiary Novelis posted an 18% YoY drop in its net income attributable to the shareholders. Novelis also withdrew its short-term earnings before interest tax depreciation and amortisation (EBITDA) per tonne guidance of $525 due to the suspension of guidance to tight scrap spreads due to accelerated scrap purchases by China after Asia’s largest economy accelerated its aluminium scrap purchase, which led to a sharp increase in prices after liberating its policies.

Novelis' EBITDA per tonne stood at $498 in the quarter ended September 2024, down from $519 during the same quarter last year and $525 in the June quarter.

Novelis Inc, the overseas arm of the Aditya Birla Group's Hindalco Industries has raised $750 million (about Rs 64.50 billion) 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 63.46 billion) 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. 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, 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. The company is expected to report EBITDA per tonne between $400 to $407, which is also lower than the $499 figure it reported last year. Hindalco’s wholly-owned subsidiary had posted an 18% year-on-year drop in its net income in the second quarter ended September 2025 to $128 million. after the company’s wholly-owned subsidiary Novelis posted an 18% YoY drop in its net income attributable to the shareholders. Novelis also withdrew its short-term earnings before interest tax depreciation and amortisation (EBITDA) per tonne guidance of $525 due to the suspension of guidance to tight scrap spreads due to accelerated scrap purchases by China after Asia’s largest economy accelerated its aluminium scrap purchase, which led to a sharp increase in prices after liberating its policies. Novelis' EBITDA per tonne stood at $498 in the quarter ended September 2024, down from $519 during the same quarter last year and $525 in the June quarter.

Technology

28 Oct 2025

Building Faster, Smarter, and Greener!

Backed by ULCCS’s century-old legacy, U-Sphere combines technology, modular design and sustainable practices to deliver faster and more efficient projects. In an interaction with CW, Rohit Prabhakar, Director - Business Development, shares how the company’s integrated model of ‘Speed-Build’, ‘Smart-Build’ and ‘Sustain-Build’ is redefining construction efficiency, quality and environmental responsibility in India.U-Sphere positions itself at the intersection of speed, sustainability and smart design. How does this translate into measurable efficiency on the ground?At U..

Infrastructure Transport

28 Oct 2025

Smart Roads, Smarter India

India’s infrastructure boom is not only about laying more kilometres of highways – it’s about building them smarter, safer and more sustainably. From drones mapping fragile Himalayan slopes to 3D machine-controlled graders reducing human error, technology is steadily reshaping the way projects are planned and executed. Yet, the journey towards digitisation remains complex, demanding not just capital but also coordination, training and vision.Until recently, engineers largely depended on Survey of India toposheets and traditional survey methods like total stations or DGPS to prepare detai..

Real Estate

28 Oct 2025

What Does DCPR 2034 Mean?

The Maharashtra government has eased approval norms for high-rise buildings under DCPR 2034, enabling the municipal commissioner to sanction projects up to 180 m on large plots. This change is expected to streamline approvals, reduce procedural delays and accelerate redevelopment, drawing reactions from developers, planners and industry experts about its implications for Mumbai’s vertical growth.Under the revised DCPR 2034 rules, buildings on plots of 2,000 sq m or more can now be approved up to 180 m by the municipal commissioner, provided structural and geotechnical reports are certified b..