Local steel major 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 help settle the entire debt of 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 a $ 357 million loan to its lenders. (The entire) external debt will be paid in full in the next quarter,” he said.
Over the past three years, JSP has reduced its external debt to $ 130 million after these payments from $ 1.8 billion. The bulk of JSP’s external debt is now in its Australian subsidiaries ($ 113 million). The Group plans to repay this loan by 22 September. The net debt of the JSP Group has dropped from a high of 46,500cr to 10,981cr in December 2021.
According to the company statement, the net debt of the JSPL Group has dropped from a peak of Rs 46,500 crore to Rs 10,981 crore in December 2021.
“We are paying prepayments to our lenders to strengthen our balance sheet, and we want to be a net debt-free company by FY23 through accelerated depreciation. The company is in line with India’s growth story. We will expand our steelmaking capacity to over 15 MTPA by 2025, ”VR Sharma, Managing Director, JSPL, said.
JSPL is a leading Indian Infrastructure Conglomerate in the Steel, Power and Mining sectors. With an investment of about $ 12 billion (90,000 Crore Rupees) worldwide, the company continues to increase the use of its capacity and efficiency to contribute towards building an independent India.
According to additional information shared by JSPL, the Mauritius -based subsidiary is the holding company for its mining and mineral assets overseas.
“The loan was taken to acquire mines and mineral assets to provide raw material security to JSPL India’s steel operations in particular,” he said.