Hindalco Industries has achieved financial closure for its Rs 13,195 crore green-field Aditya Aluminium smelter project at Lapanga in Odisha. The project has been funded in a debt equity ratio of 75:25 with a debt component of Rs 9,896 crore. The debt carries a tenor of 12.5 years and is priced at the SBI base rate plus 125 bps, which presently works out to 11.25% 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.
At a time when most companies are shying away from committing capex, Hindalco has chosen to stay its course and is delivering on its long term strategic objective.
The development of Aditya Aluminium Project is a strategic step forward for Hindalco Industries towards achievement of its long term vision. Post stabilisation this plant with a proposed annual aluminium production capacity of 359,000 tonnes and backed by captive power plant of 900 MW will be amongst the lowest cost producers globally.
