JSPL talking to banks for refinancing under 5/25 scheme

Naveen Jindal-led Jindal Steel and Power Ltd (JSPL) is in talks with banks for various financing options including the RBI's 5/25 scheme.
"JSPL has also implemented a project, which will qualify for 5/25 scheme and is in discussion with the banks for various financing options including 5/25 scheme," the firm said in a regulatory filing today.
Considering the need to allow longer repayment period for term loans to projects, which require elongated servicing period, RBI announced 5/25 scheme.
JSPL shares today fell marginally by 0.09 per cent to settle at Rs 57 apiece on the BSE.
The firm's shares took a beating on the bourses for the last two days amid concerns over its debt situation.

Investors became jittery after rating agency Crisil downgraded JSPL and assigned a negative outlook.

Fund houses have exposure worth more than Rs 2,000 crore to JSPL Group's debt instruments, sources said.
The steel-to-power Group has significant debt. For the 2014-15 fiscal, JSPL had a consolidated net debt of Rs 42,929 crore against a net debt of Rs 35,419 crore in 2013-14.
In an investor presentation on its third quarter results, the company said the focus would be on reducing working capital - receivables and inventories - as well as exploring options to reduce interest costs.
In a regulatory filing yesterday, JSPL said: "The company has been pursuing monetisation actions as previously indicated/available in the public domain and will come out with the appropriate announcement as and when any transaction is concluded."

For October-December quarter this fiscal, JSPL narrowed its consolidated net loss to Rs 573.48 crore. It reported a net loss of Rs 1,618.78 crore in the year-ago period.
Total income fell to Rs 4,366.89 crore from Rs 5,078.93 crore during the same period.