Hindalco arm ties up Rs 4,906 cr debt for Orissa project

Leading aluminium producer Hindalco today said its subsidiary Utkal Alumina has tied up Rs 4,906 crore debt from a group of banks for its refinery project in Orissa.

"Hindalco has successfully achieved the financial closure of UAIL with the signing of a common loan agreement of Rs 4,906 crore on July 28, 2010. This constitutes the entire debt requirement of the project.

"The loan documents were signed in Bhubaneshwar by a group of 28 banks. The syndication is lead by IDBI Bank with SBI Caps and the Royal Bank of Scotland as joint arrangers and book runners," the company said in a filing to the Bombay Stock Exchange.

Hindalco added that the upfront equity requirement of the project has already been tied up.
    
Utkal Alumina International, a wholly-owned subsidiary of Hindalaco, is setting up an alumina refinery of capacity 1.5 million tonnes per annum in Rayagada district of Orissa. The company said that the project is expandable to 3 MTPA.
    
"The project will feed the alumina requirements of the Mahan and the Aditya smelters presently under construction," it added.