Utkal Alumina plans to raise up to Rs 20 bn in bonds

Utkal Alumina International Ltd (UAIL), a unit of Hindalco Industries, plans to raise up to Rs 20 billion ($335.8 million) via sale of 10-year bonds, said two sources with direct knowledge of the matter.

The firm intends to sell floating rate bonds benchmarked to the SBI base rate, which stands at 9.70 per cent, the sources said.

Proceeds from the bond sale will be used to partly refinance existing term debt, they said, adding the bonds were rated "AA-plus" by CRISIL and CARE.

The bonds have been guaranteed by the parent company.