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JSPL defaults on interest payments on NCDs

06 Oct 2016 Evaluate

Jindal Steel and Power (JSPL), one of the largest players in steel market in India, has defaulted on interest repayments to its bondholders due on September 30, 2016. Those NCDs had a coupon rate of 9.8% with about two-10 year maturities with banks, provident funds believed to be the investors.

Earlier this year, rating agency Crisil had cut the company’s corporate debt rating to 'D', which is default category, from 'BB+'. According to the rating agency, company had a total outstanding debt of Rs 40000 crore, of which Rs 26,200 crore was in long-term instruments and Rs 13800 crore in short-term papers. In the quarter ended June 2016, the company's loss doubled to Rs 1082 crore from Rs 542 crore in the corresponding period last year.

JSPL is a part of Jindal Group and is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. The company produces economical and efficient steel and power through backward integration from its own captive coal and iron-ore mines and passes on the benefits to its customers.


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