Magazine : 
Hindalco Raises Rs 3000cr via Pvt Placement of NCDs
Bangalore: Aditya Birla group's flagship firm, Hindalco Industries , said it has raised 
3,000 crore through a private placement of NCDs.
The company issued secured, listed-rated non-convertible debentures (NCDs) having maturity of 10 years with a coupon of 9.55 percent to institutional investors, it said here.
HDFC Bank and Standard Chartered Bank were the joint arrangers for the deal, and the transaction closed today.
"This deal represents one of the single largest NCD issues by any private sector corporate in the recent past in the country and sets a new benchmark on both pricing and size," the company said.
The issue is a part of the active financial planning initiated to achieve significant cost savings by way of reduced interest cost and lengthening the average maturity of debt.
The issuance also significantly adds to the liquidity position of Hindalco and provides flexibility to determine its long-term financing arrangements for large greenfield capital expenditure programme that is already underway, it added.
"With no existing supply of Hindalco paper in the market, this provides a very unique opportunity for building exposure to high quality, long-tenor paper at very attractive yields and benefit on capital gains as interest rates ease over the next few quarters.
"We are confident that this issue will mark the return of the domestic corporate debt segment and will be the benchmark for a new corporate yield curve," Hindalco finance president Alphonso Richard Das said.
Source: PTI
3,000 crore through a private placement of NCDs.
The company issued secured, listed-rated non-convertible debentures (NCDs) having maturity of 10 years with a coupon of 9.55 percent to institutional investors, it said here.
HDFC Bank and Standard Chartered Bank were the joint arrangers for the deal, and the transaction closed today.
"This deal represents one of the single largest NCD issues by any private sector corporate in the recent past in the country and sets a new benchmark on both pricing and size," the company said.
The issue is a part of the active financial planning initiated to achieve significant cost savings by way of reduced interest cost and lengthening the average maturity of debt.
The issuance also significantly adds to the liquidity position of Hindalco and provides flexibility to determine its long-term financing arrangements for large greenfield capital expenditure programme that is already underway, it added.
"With no existing supply of Hindalco paper in the market, this provides a very unique opportunity for building exposure to high quality, long-tenor paper at very attractive yields and benefit on capital gains as interest rates ease over the next few quarters.
"We are confident that this issue will mark the return of the domestic corporate debt segment and will be the benchmark for a new corporate yield curve," Hindalco finance president Alphonso Richard Das said.
