MUMBAI Nov 17 （Reuters） - Novelis Inc, a unit of Indian aluminium maker Hindalco Industries Ltd plans to raise $4 billion to refinance the loans borrowed by Hindalco in 2007 for its acquisition of Novelis, the Economic Times said on Wednesday.
Around $3.5 billion will be refinanced by a mix of bonds and long term loans, while $500 million would be raised as revolving loan for Novelis' working capital requirements, the newspaper said, citing people familiar with the deal whom it did not name.
The debt refinancing will help Hindalco focus on its expansion projects, said the people quoted earlier. Bank of America-Merrill Lynch ，Citi and Royal Bank of Scotland Group Plc have been sounded and more banks are expected to join the process, the report said.
Hindalco, which currently has a debt of $1.4 billion, had borrowed around $982 million for the acquisition as it extended corporate guarantees for the loan, which would now be transferred to Novelis' books as part of the refinancing exercise. Novelis currently has a debt of $2.5 billion.
The Indian aluminium maker's acquisition of Novelis for $6 billion made it one of the top five aluminium makers in the world. The Hindalco spokesperson declined to comment, the newspaper said while Reuters could not reach the company for a comment immediately.
（$1=45.31 rupees）
（Reporting by Nandita Bose; Editing by Lincoln Feast）
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