Around USD 3.5 billion will be refinanced by a mix of bonds and long term loans, while USD 500 million would be raised as revolving loan for Novelis' working capital requirements, the newspaper said, citing people familiar with the deal whom it did not name
The debt refinancing will help Hindalco focus on its expansion projects, said the people quoted earlier.
Bank of America-Merrill Lynch, Citi and Royal Bank of Scotland Group Plc have been sounded and more banks are expected to join the process, the report said.
Hindalco, which currently has a debt of USD 1.4 billion, had borrowed around USD 982 million for the acquisition as it extended corporate guarantees for the loan, which would now be transferred to Novelis' books as part of the refinancing exercise. Novelis currently has a debt of USD 2.5 billion.
The Indian aluminium maker's acquisition of Novelis for USD 6 billion made it one of the top five aluminium makers in the world.
The Hindalco spokesperson declined to comment, the newspaper said while Reuters could not reach the company for a comment immediately.
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