Hindalco Unit Utkal Alumina Ties up Debt for Orissa Project

Hindalco subsidiary Utkal Alumina International Limited has tied up INR 4906 crore debts from a group of banks for its refinery project in Orissa. As per report, Hindalco has successfully achieved the financial closure of UAIL with the signing of a common loan agreement of INR 4906 crore on July 28th 2010. This constitutes the entire debt requirement of the project.

The company said that the loan documents were signed in Bhubaneswar by a group of 28 banks. The syndication is led by IDBI Bank with SBI Caps and the Royal Bank of Scotland as joint arrangers and book runners. The upfront equity requirement of the project has already been tied up.

Utkal Alumina International is setting up an alumina refinery with a capacity 1,5 Mt/a in Rayagada district of Orissa. The company said that the project has the capacity to expand to 3 Mt/a. The project will feed the alumina requirements of the Mahan and the Aditya smelters currently under construction. (08/2010)