Hindalco to refinance debt worth $2.5 billion

Non-ferrous metals producer Hindalco is in talks with banks to refinance its USD 2.4 billion debt and raise USD 1.5 billion via a bond issue.

In what may be its largest debt refinancing, the company is looking to change its loan terms in two tranches. The company will refinance its Rs 9,900 crore debt taken for Aditya Aluminium Unit and Rs 5,100 crore debt for Utkal Alumina in the second tranche.

The company is hoping its loan maturity tenure can be extended and the interest costs be reduced by 3-4 percent.

With respect to the bond issue, the company is looking at a December timeline to raise USD 1.5 billion.