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Sources say that India's Jayaswal Neco is switching to lower cost funding instead of high-cost bonds

Sources say that India's Jayaswal Neco is switching to lower cost funding instead of high-cost bonds
Sources say that India's Jayaswal Neco is switching to lower cost funding instead of high-cost bonds

Two sources confirmed on Friday that India's Jayaswal Neco was refinancing its high-yield debt by combining it with lower-cost term and working capital loans. The company also wants to obtain new facilities worth about 22 billion rupees (about $246 million).

One source said that the new borrowings will have an interest rate of 12.50%. This is significantly lower than the current coupon of 17.50% on the high-yield bonds. The term loan is likely to have a duration of six years, with a call-option after about 20 months.

One of the sources stated that the deal would be completed by the end of the first quarter of December.

A term loan will likely have a duration of six years with a call-option after 20 months.

Sources could not be identified as they were not authorized to speak with media. Jayaswal didn't immediately respond to an email asking for comment. Sources said that a rating upgrade from India Ratings, to BBB+, has enabled the company to secure lower funding.

The rating agency stated that "the rating reflects Ind-Ra’s expectations of JNIL’s improved operational profile and financial profile in the FY26 due increased capacity utilization and higher sales volume."

(source: Reuters)