Jindal Steel & Power prepays $105.6m debt of Australian subsidiary

Jindal Steel & Power Limited (JSPL) said that it has made a pre-payment of $105.66 million of its step-down subsidiary — Jindal Steel & Power (Australia) as part of its efforts to fully pay off its overseas debt.

Following the prepayment, Jindal Steel & Power’s debt in Australia has been reduced by nearly 50%.

The Indian infrastructure conglomerate said that it has been working on reducing its net debt by more than INR 31,306 crores from a peak of around INR 46,533 crores in 3QFY17 to INR 15,227 crores as reported in Q1FY22.

Jindal Steel & Power said that it is also focusing on sustaining minimum levels of liquidity on its balance sheet at all times.

Jindal Steel & Power prepays $105.6m debt of Australian subsidiary. Photo courtesy of Hands off my tags! Michael Gaida from Pixabay.

V R Sharma — Managing Director of Jindal Steel & Power said: “We are paying back to lenders before time in order to strengthen our balance sheet. The company is aligned with the India growth story and we want to become a net debt free company by FY23 through accelerated deleveraging.

“We will expand our Steelmaking capacity in Angul to more than 12 MTPA by 2025 through internal accruals.”

In May 2021, Jindal Steel & Power said that it made a prepayment of INR 24.62 billion to its term lenders.