Jindal Steel & Power prepays INR 24.62bn to term lenders

Jindal Steel & Power Limited (JSPL) said that it has made a prepayment of INR 24.62 billion ($330 million) to its term lenders in an effort to become net debt free.

The Indian steel and energy company said that the prepayment is in continuation of its financial strategy of not only reducing its debt but also building a strong balance sheet with an optimum capital mix.

During the financial year ended 31 March 2021, Jindal Steel & Power produced 7.51 million tonnes. Recently, the company announced the sale of its thermal power business for $400 million to further cut down its debt and also to reduce its carbon footprint by nearly half.

Jindal Steel & Power prepays INR 24.62bn to term lenders. Photo courtesy of Hands off my tags! Michael Gaida from Pixabay.

Jindal Steel & Power said that it has worked on reducing its debt of more than INR 200 billion from a peak of around INR 465 billion in 3QFY17 to INR 256 billion as reported in 3QFY21.

V R Sharma – Jindal Steel & Power MD said: “The significant debt reduction is part of our long term financial strategy to create a strong balance sheet. In the coming quarters we intend to further strengthen our balance sheet and become net debt free in the near future.”