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JSW SAJSW updates financing terms under SSL formula
Listed coking coal group JSW's management board in consultation with a consortium of financial institutions, has updated the terms of financing under the SLL (Sustainability-linked loan) formula, this is, linked to sustainability indicators, to PLN 1.65 billion (EUR 387.8 mln), the company said in a market filing.
The original financing amount of PLN 1,650 million (EUR 387.8 mln) consisted of funds allocated to finance investments and general corporate purposes in the amount of PLN 730 million (EUR 171.6 mln), funds allocated to finance environmental investments worth PLN 490 million (EUR 115.2 mln) and PLN 430 million (EUR 101.1 mln) for working capital financing.
"Due to its current financial situation, the company has revised its investment plans, including a significant reduction in environmental investment expenditure in 2025. As a result of negotiations with the consortium, it was agreed that the unused financing in the environmental part would be reduced. As a result, the company's debt under the SLL loan will not increase. Following the update of the terms and conditions, the financing of environmental investments has been reduced to PLN 255 million," the filing reads.
It was added that during the negotiations, it was agreed, among other things, that the company undertook to secure funds in the amount of at least PLN 88 million (EUR 20.7 mln) to service interest payments and to provide the consortium with assumptions for the Remedy Plan together with a simplified financial model.
In April 2023, JSW signed a PLN 1.65 billion (EUR 387.8 mln) financing agreement with a consortium of banks and financial institutions in the form of a Sustainability-linked loan.
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