JSPL averts loan default on agreement with lenders: Sources

India-based steel and energy company Jindal Steel and Power Ltd. (JSPL) avoided a default on its debt as it reached an agreement with lenders to refinance part of its debt under India’s 5/25 restructuring norms. The 5/25 scheme in India¬†allows banks to extend long-term loans of 20-25 years to match the cash flow of projects, while refinancing them every five or seven years.

According to sources, lenders have agreed to restructure INR 2,500m (USD 377.3m) of its INR 450,000m (USD 6.7bn) debt, without disclosing further details.

Amongst others, lenders to JSPL are as follows:

  • Axis Bank
  • Bank of Maharashtra
  • EXIM Bank
  • HDFC Bank
  • Andhra Bank
  • Corporation Bank
  • Punjab and Sindh Bank

Sources: Moneycontrol