BackJindal Steel considering 5/25, other options for debt
The 5/25 scheme allows loan repayments for infrastructure projects to be stretched out over a longer tenure
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Mumbai: Naveen Jindal-controlled Jindal Steel and Power Ltd (JSPL) on Wednesday informed stock exchanges that it is considering refinancing its loans under the 5/25 scheme along with other options to meet its debt obligations.
The 5/25 scheme allows loan repayments for infrastructure projects to be stretched out over a longer tenure.
“The steel sector has been impacted negatively by low sales realization. Financial results of steel sectors have been negatively impacted due to reduction in sales prices," the company said in a statement to the BSE on Wednesday.
The exchange had asked JSPL to clarify on an Economic Times news report which said that foreign lenders to the company are considering recalling $550 million in loan to the company.
For the quarter ended 31 December, JSPL’s consolidated loss narrowed to ₹ 573.48 crore from ₹ 1618.780 crore in the year earlier. As of September, JSPL had a consolidated debt of ₹ 42,534.04 crore.
On 17th February, Crisil Ratings downgraded JSPL to below investment grade. It cut the long-term credit rating for ₹ 3,212 crore worth of long-term loans to ‘BB+’ from ‘BBB+’.
The agency also cut the rating for ₹ 415 crore of short-term loans of JSPL to ‘A4+’ from ‘A3+’. “The downgrade reflects Crisil’s belief that the JSPL group’s liquidity will deteriorate significantly in the near term," the rating agency said in its statement.
At 1.51 pm, Jindal Steel and Power Ltd fell 1.58% to ₹ 65.20 while the benchmark Sensex fell 0.04% to 24,649.63 points.
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