Novelis Corporation announces plans to raise $750 million for debt repayment & cash reserves

Novelis Inc., a global leader in sustainable aluminium solutions and a subsidiary of Hindalco Industries, announced today (Thursday, January 9) that its indirectly wholly-owned subsidiary plans to raise $750 million through a bond issuance. The company intends to allocate the net proceeds from this offering to repay $738 million of outstanding debt, with any remaining funds added to its balance sheet as cash reserves.

The US-based aluminium rolled products company reported an 18 per cent drop in net income to $128 million for the September quarter of the 2024-25 fiscal year. This compares to a net income of $157 million in the same period of the previous financial year, according to a company filing with the BSE.

"Novelis Inc...today announced that its indirect wholly-owned subsidiary Novelis Corporation has priced an offering of USD 750 million aggregate principal amount of 6.875 per cent senior notes due in January 2030, which represents an increase of USD 250 million from the offering size previously announced," it informed the bourses.

Net sales for the second quarter increased by 4.5 per cent to $4,295 million, up from $4,107 million in the same period last year. This growth was primarily driven by higher average aluminium prices and a 1% rise in total flat-rolled product shipments, reaching 945 kilotonnes.

"Net income attributable to our common shareholder decreased 18 per cent versus the prior year to USD 128 million in the second quarter of fiscal year 2025," the filing had said.