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Utkal Alumina closes refinancing for refinery project in Odisha
Edited by : AL CIRCLE
1 min read
Hindalco Industries, through its subsidiary Utkal Alumina, has closed a Rp30 billion ($502 million) refinancing for its aluminium refinery project in Odisha, India. The financing, which was lead arranged by SBI and carries a tenor of 8 years, is to replace a Rp49.06 billion project financing, which signed in July 2010. Hindalco Industries plans to refinance the remaining Rp19.06 at a later point.
The original financing was lead arranged by SBI, IDBI Bank and RBS, carried a tenor of 11.5 years, and priced at 325bp over the SBI base rate. A group of 25 other lenders joined during the syndication phase. The loan included a 1-year grace period, which meant that repayments were due to start early 2014 as the commercial operation date occured earlier this year.
The project entails the development of a 1.5 million tonnes per annum aluminium refinery project in Rayagada in the northeastern Indian state of Odisha. Hindalco, which has already put Rp21.03 billion of equity into the project, is the offtaker. Hindalco is one of the lowest cost aluminium producers in the world and has a vertically integrated structure from bauxite mining to smelting and downstream sheet and foil rolling.
The original financing was lead arranged by SBI, IDBI Bank and RBS, carried a tenor of 11.5 years, and priced at 325bp over the SBI base rate. A group of 25 other lenders joined during the syndication phase. The loan included a 1-year grace period, which meant that repayments were due to start early 2014 as the commercial operation date occured earlier this year.
The project entails the development of a 1.5 million tonnes per annum aluminium refinery project in Rayagada in the northeastern Indian state of Odisha. Hindalco, which has already put Rp21.03 billion of equity into the project, is the offtaker. Hindalco is one of the lowest cost aluminium producers in the world and has a vertically integrated structure from bauxite mining to smelting and downstream sheet and foil rolling.
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