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Hindalco secures funds for Rs 13,200-cr Odisha project

The domestic aluminium major Hindalco Industries Monday said that it has achieved financial closure for its Rs 13,195-crore greenfield Aditya Aluminium smelter project at Lapanga in Odisha.

Mumbai: The domestic aluminium major Hindalco Industries Monday said that it has achieved financial closure for its Rs 13,195-crore greenfield Aditya Aluminium smelter project at Lapanga in Odisha.

The project has a debt to equity ratio of 75:25 with the debt component being Rs 9,896 crore, the company said in a statement.

The debt component carries a tenor of 12.5 years with an interest rate of 11.25 percent per annum.

"SBI Capital Markets and IDBI Bank led the debt syndication, which saw a huge participation from almost the entire banking community with a total of 28 commercial banks and financial institutions participating in the transaction," the company said.

The proposed project has an annual aluminium capacity of 3,59,000 tonne along with a captive power unit of 900 MW. Referring to the financial closure, Hindalco president for finance, Alphonso Richard Das said, "Recently, the company has successfully tapped both the domestic bond market as well as the loan market to meet its financing need. In both the cases, the company has achieved benchmark financing terms."

Earlier, the aluminium major said that it had lined up a capital expenditure of Rs 10,000 crore for its greenfield as well as brown-field projects in the current fiscal.

Also, the company had said that Mahan Aluminium Project, Aditya Aluminium Project and Utkal Alumina Refinery were at advanced stages of implementation.

PTI