Steel Major Jindal Steel prepaid a loan of $357 million; Debt-free target by fiscal year 23
Large steel group Jindal prepaid a loan of 357 million USD; set a debt-free goal by fiscal year 23
Domestic rebar group Jindal Steel and Power Limited (JSPL) on Sunday said its wholly-owned subsidiary in Mauritius had prepaid $357 million to lenders.
This advance payment will clear all debt owed to Jindal Steel & Power (Mauritius) (JSPML). The loan has a corporate guarantee from JSP India, which will also be issued, JSPL said in a statement.
“Jindal Steel & Power (Mauritius) has prepaid $357 million in loans to its lenders. Foreign debt (in full) will be paid off in full in the coming quarters.”
Over the past three years, JSP has reduced its overseas debt to $130 million following this payment from $1.8 billion. The majority of JSP’s external debt now resides in its Australian subsidiary ($113 million). The Group plans to repay this loan by September 22. The net debt of JSP Group has decreased from a peak of 46,500cr to 10,981cr in December 2021.
According to the company’s report, JSPL Group’s net debt fell from a peak of 46,500 crore to 10,981 crore in December 2021.
“We are prepaying our lenders to strengthen our balance sheet, and we want to be a net debt-free company by FY23 through accelerated write-off. In line with India’s growth story, we will expand our steel production capacity to more than 15 MTPA by 2025,” said VR Sharma, Managing Director, JSPL.
JSPL is a leading Indian Infrastructure Group in the Steel, Power and Mining sectors. With an investment of approximately $12 billion (Rs 90,000 Crore) globally, the company is continuously expanding the use of capacity and efficiency to contribute to building a resilient India.
According to additional information shared by JSPL, the Mauritius-based subsidiary is the parent company that owns offshore mining and mineral assets.
“The loan is made to purchase mines and mineral assets to provide raw material security for JSPL India’s steelmaking operations primarily,” it said.
