Novelis raises $4 bn to part re-finance debt

Novelis will pay $1.7 billion to Hindalco as dividend and use the rest to part re-finance the debt on it's books.

| Dec 11, 2010, 11.56 AM IST

MUMBAI: Hindalco's Canadian arm Novelis raises $4 billion on Friday. $2.5 billion raised via bonds, 7-year bond issued at 8.375% and 10-year bond at 8.75%.

Term loan of $1.5 bn raised at the rate of 375 basis points above Libor where the base rate of Libor is fixed at 150 basis points. Sources said, "the bonds were over subscribed." Novelis will pay $1.7 billion to Hindalco as dividend and use the rest to part re-finance the debt on it's books.

Hindalco officials were unavailable for comments.

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