Local steel major Jindal Steel and Power Limited (JSPL) said on Sunday that its wholly-owned subsidiary in Mauritius had prepaid $357 million to lenders.
This prepayment will clear the entire debt of Jindal Steel & Power (Mauritius) (JSPML). This loan had corporate guarantees from JSP India, which will also be released, JSPL said in a statement.
“Jindal Steel & Power (Mauritius) has prepaid a $357 million loan to its lenders. (All) overseas debt will be fully repaid over the next few quarters,” he said.
Over the past three years, JSP has reduced its overseas debt to $130 million after this payment, from $1.8 billion. Most of JSP’s foreign debt now rests with its Australian subsidiary ($113 million). The Group expects to repay this loan by September 22. The JSP Group’s net debt fell from a peak of 46,500cr to 10,981cr in December 2021.
According to the company’s statement, JSPL Group’s net debt fell from a high of Rs 46,500 crore to Rs 10,981 crore in December 2021.
“We are prepaying our lenders to strengthen our balance sheet, and we aim to become a net-debt-free company by FY23 through accelerated deleveraging. The company is aligned with India’s growth story. We will expand our steel production capacity to over 15 MTPA by 2025,” said VR Sharma, Managing Director of JSPL.
JSPL is a leading Indian infrastructure conglomerate in the steel, power and mining sectors. With an investment of approximately $12 billion (Rs 90,000 crore) across the globe, the company is continuously adjusting its capacity utilization and efficiency to help build a self-reliant India.
According to additional information shared by JSPL, the Mauritian subsidiary is the holding company for its overseas mining and mining assets.
“The loan was contracted for the acquisition of mines and mining assets to provide commodity security to the steel operations of JSPL India primarily,” he said.