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.

Redefine the future of urban mobility! Join us at the Metro Rail Conference 2025 to explore groundbreaking ideas and insights. 👉 Register today!

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
Real Estate

Gujarat Struggles to Curb Illegal Constructions in Ahmedabad

The Gujarat Regulation of Unauthorised Development Act, 2022, presents a contradiction. While it ostensibly seeks to curb unauthorised development, it simultaneously legalises such constructions upon payment of a fee. Despite being introduced initially in the early 2000s, then again in 2011, and most recently enacted in 2022, the legislation has failed to halt the rise of illegal constructions or unapproved extensions to residential and commercial properties. The Ahmedabad Municipal Corporation's (AMC) practice of demolishing certain structures while regularising others for a fee has weakened..

Next Story
Real Estate

DTCP Issues Notices for Building Code Violations in Gurugram's DLF

Following a recent survey that identified illegal construction and unauthorized commercial activities at 4,183 properties in DLF Phases 1 to 5, the Department of Town and Country Planning (DTCP) informed the Punjab and Haryana High Court about the issuance of notices to property owners. DTCP indicated that 1,138 notices had already been served to homeowners in DLF Phase 3, with additional notices to be issued soon. Property owners have until January 31 to revert to the approved building designs and cease all illegal commercial operations. Failure to comply would result in demolition and seali..

Next Story
Infrastructure Urban

Gujarat HC Removes GST on Industrial Leases to Encourage Investment

The recent ruling is set to streamline transactions and potentially encourage increased investments in India’s industrial and commercial leasing sectors. The judgment addressed whether transferring leasehold rights for Gujarat Industrial Development Corporation (GIDC) plots constitutes a ‘supply’ under the GST Act. The court determined that these transactions involve the transfer of immovable property rather than a service, thereby placing them outside the purview of GST. This decision offers significant relief to industries such as manufacturing, logistics, and warehousing, where long..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000