Homegrown steel major JSPL prepays loan worth USD 357 million of Mauritius subsidiary!
We want to become a net debt-free company by FY23 through accelerated deleveraging
Jindal Steel & Power (Mauritius) (JSPML), a wholly-owned subsidiary of Jindal Steel & Power (JSPL) has prepaid a loan worth USD 357 million to its lenders. This prepayment will help clear the entire debt on JSPML. This loan had corporate guarantees from JSPL, which will also get released.
Over the past three years, JSPL has been able to reduce its overseas debt from USD 1.8 billion to USD 130 million post this payment. The bulk of its overseas debt now sits in its Australian subsidiary USD 113 million. The Group plans to repay this loan by September 2022. JSPL Group’s net debt has come down from a peak of Rs 46,500 crore to Rs 10,981 crore in December 2021.
Managing Director V R Sharma said, “We are pre-paying our lenders to further strengthen our balance sheet and we want to become a net debt-free company by FY23 through accelerated deleveraging. The company is aligned with the India growth story. We will expand our steelmaking capacity to over 15 MTPA by 2025”.
The stock of Jindal Steel & Power is up by 12.31 per cent on an MTD basis while it has jumped nearly 26.5 per cent on a YTD basis.