Novelis Inc., a subsidiary of Hindalco Industries, announced plans to raise $750 million through a bond issue. The bonds will be issued by its wholly-owned subsidiary, Novelis Corporation, and the company intends to use the proceeds primarily to pay down $738 million of existing debt, with any remaining funds directed toward increasing its cash reserves.
The company stated that it has priced the bond offering at $750 million in senior notes with a 6.875% interest rate, maturing in January 2030. This amount represents an increase of $250 million over the previously anticipated offering size. Novelis, a leader in sustainable aluminum solutions, is looking to strengthen its balance sheet with this initiative.
In its most recent financial report, Novelis revealed an 18% drop in net income, reporting $128 million for the September quarter of fiscal 2024-25, compared to $157 million in the same period the previous year. Despite the decrease in profits, the company saw a 4.5% increase in net sales, reaching $4.3 billion, driven by higher aluminum prices and a modest rise in shipments of flat-rolled products.
The company’s second-quarter success was also fueled by a record number of beverage packaging shipments, and the global footprint helped minimize the impact of production disruptions due to flooding at the Sierre facility. Novelis continues to focus on its growth initiatives while managing market shifts and prioritizing a strong financial position.
Steve Fisher, President and CEO of Novelis, and Devinder Ahuja, Executive Vice President and CFO, emphasized the importance of disciplined balance sheet management as the company navigates current market challenges and advances its ongoing investments.
Novelis Inc. is driven by a commitment to shaping a more sustainable world through collaboration. As a global leader in innovative aluminum products and solutions, we are also the world’s largest recycler of aluminum. Our goal is to lead the way in providing low-carbon, sustainable aluminum solutions and to establish a fully circular economy by working closely with suppliers and customers across industries such as aerospace, automotive, beverage packaging, and specialties in North America, Europe, Asia, and South America.
In fiscal year 2024, Novelis reported net sales of $16.2 billion. A subsidiary of Hindalco Industries Limited, Novelis is part of the Aditya Birla Group, a multinational conglomerate based in Mumbai and a recognized leader in aluminum and copper production.
