Novelis Corporation, a wholly owned subsidiary of Hindalco Industries Limited, has priced its senior notes offering at $750 million, surpassing the previously announced target by $250 million. The notes, due January 2030, will carry an interest rate of 6.875 per cent per annum and were priced at par value, the company announced on January 8.

The shares of Hindalco Industries Limited were trading at ₹590.10 up by ₹3.45 or 0.59 per cent on the NSE today at 10.56 am.

The aluminium solutions provider plans to use the proceeds primarily to repay $738 million of outstanding borrowings under its revolving credit facility, with the remainder allocated for general corporate purposes. The offering is expected to close on January 13, 2025, subject to customary closing conditions.

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The notes will be guaranteed jointly and severally on a senior unsecured basis by Novelis Inc. and certain of its subsidiaries. The offering is being made through a private placement exempt from registration under the Securities Act of 1933, targeting qualified institutional buyers under Rule 144A and offshore transactions under Regulation S.

Novelis, which reported net sales of $16.2 billion in fiscal year 2024, is a subsidiary of Hindalco Industries Limited and serves as the metals flagship company of the Aditya Birla Group. The company operates globally, providing aluminium products and solutions to aerospace, automotive, beverage packaging, and specialty industries across North America, Europe, Asia, and South America.