Aug. 22 (Bloomberg) -- Hindalco Industries Ltd., India’s second-largest aluminum maker by output, plans to sign an agreement to borrow 100 billion rupees ($1.8 billion) as early as next month, according to two people familiar with the matter.
The interest rate for the 12 1/2-year term facility, which will finance the company’s Aditya Alumina and Aluminium project in the eastern state of Odisha, is about 11.25 percent, one of the people said, asking not to be identified because the information is private. The company has raised 60 billion rupees selling bonds since January, the person said.
The integrated alumina project includes a 4.2 million ton bauxite mine, a 1.5 million ton alumina refinery and a 359,000 ton smelter, according to Hindalco’s website. The company has placed orders for equipment for the smelter and power plant after receiving most of the clearances required for the project, it said.
Hindalco spokeswoman Pragnya Ram declined to comment on the financing when contacted yesterday and couldn’t be reached when called today.
The loan is being arranged by SBI Capital Markets Ltd. and IDBI Bank Ltd., one of the people said.