Novelis Inc. Plans $750 Million Bond Issuance Amid Market Shifts

US-based Novelis Inc., a subsidiary of Hindalco Industries, plans to raise $750 million through bonds. The proceeds will repay $738 million of debt, with the balance boosting cash reserves. Despite an 18% income decline, net sales rose 4.5% in the latest quarter, driven by higher aluminum prices.

On Thursday, Novelis Inc., a part of Hindalco Industries, announced plans to raise $750 million through bond issuance. The funds are earmarked for repaying $738 million in outstanding debt while enhancing its cash reserves. This move underscores Novelis's strategic financial management amid shifting market conditions.

The aluminum solutions provider recently reported an 18% drop in net income to $128 million in the September quarter of 2024-25, compared to $157 million in the previous year. However, net sales rose by 4.5% to $4,295 million, primarily driven by increased aluminum prices and a slight uptick in flat rolled product shipments.

Steve Fisher, President and CEO of Novelis Inc., hailed the company's global operations for achieving record beverage packaging shipments, despite challenges like the outage at Sierre. CFO Devinder Ahuja emphasized ongoing efforts to manage the balance sheet effectively while pursuing growth investments.

(With inputs from agencies.)