JSPL MAKES PREPAYMENT OF ₹2,462 CR TO BANKS

NEW DELHI: Jindal Steel and Power Ltd (JSPL) on Monday said it has made a prepayment of ₹2,462 crore to its term lenders with an aim to become a net debt-free company.

JSPL made a prepayment of ₹2,462 crore to its term lenders. This is in continuation of its long stated financial strategy of debt reduction and building a robust balance sheet with optimum capital mix, JSPL said in a regulatory filing. JSPL said it has reduced its debt by more than ₹20,000 crore from a peak of approximately ₹46,500 crore in Q3FY17 to ₹25,600 crore as reported in Q3FY21. “This reduction of ₹2,462 crore is over and above the annual committed debt reduction in the financial year 2020-21,” it added.

It said it is now aiming towards becoming net debt free, but it did not share by when.

JSPL recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half. JSPL’S managing director VR Sharma said the significant debt reduction is part of the firm’s long-term financial strategy to create a strong balance sheet. “In the coming quarters we intend to strengthen our balance sheet and become net debt-free in the near future,” he added.