Hindalco Subsidiary Novelis Raises $100 Million Through US Municipal Bonds

Hindalco Industries Ltd’s step-down subsidiary, Novelis Corp, has raised $100 million through municipal bonds issued by the Industrial Development Authority of Baldwin County, US. Novelis Corp is wholly owned by Novelis Inc, which is a subsidiary of Hindalco.

The bonds carry an interest rate of 4.625% and will mature on June 1, 2055. Proceeds will fund part of the construction costs for Novelis’ solid waste disposal facilities in Baldwin County.

Interest will be paid twice a year, starting January 15, with the rate reset at the end of each interest period. The bonds will be tendered for repurchase on June 1, 2032, after which BofA Securities will act as remarketing agent.