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Debt- hit Suzlon to raise $ 300 million loan.

DEBT- LADEN Suzlon Energy will raise about $ 300 million from a consortium of banks this week in a move that will enable the world's fifth- largest wind turbine maker to repay its bonds held by foreign investors. The company, promoted by industrialist Tulsi Tanti, needs to repay debt close to $ 700 million this year.

" We are at an advanced stage of raising up to $ 300 million from our senior secured lenders. Our banks are aligned and supportive of our initiatives to address near- term obligations and achieving our longterm capital structure objectives making us confident of meeting our obligations," Kirti Vagadia, chief financial officer, Suzlon Energy, said.

Vagadia, however, neither specified the date by which the funds will be raised nor name of the lenders.

Suzlon Energy, which has a debt of about ` 11,000 crore ($ 2 billion) as of March 31, will close the deal within a week. The fresh debt is being raised from a consortium of about 20 banks, sources said.

Early this month, Suzlon Energy's foreign currency convertible bond ( FCCB) holders approved extension of the repayment date of $ 360 million by 45 days to July 27. It had also received the Reserve Bank of India's approval for the extension.

The Pune- based firm has another FCCB of $ 209 million that will come up for redemption in October.

The conversion prices of these bonds at ` 76.68 and ` 97.26 are much higher than its current share price and converting the FCCBs will incur losses for the holders. On Tuesday, the company's share price closed up 0.56 per cent at ` 17.85 in a steady Mumbai market.

As far as ongoing business is concerned, the company is on a strong footing with a commendable order book position that is nearly double that of F' 12 net revenue.

" Further, our order backlog is an impressive ` 41,500 crore giving us strong visibility through FY12- 13 and beyond. Along with strategic positioning in highgrowth and high- margin markets, we are confident of maintaining our growth trajectory," Vagadia added.

According to industry sources, Suzlon was also planning to sell certain " non- critical" assets in this financial year in an attempt to raise funds.

Wind turbine maker to repay its bonds

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Publication:Mail Today (New Delhi, India)
Date:Jun 27, 2012
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