India's Suzlon Energy plans to raise USD 100 million to USD 200 million by selling some "non-critical" assets this fiscal year to pare its USD 2 billion debt, a senior official said, after the wind turbine maker posted loss for the third year in a row.
India's Suzlon Energy
Suzlon, the world's fifth largest wind turbine maker by cumulative installed capacity, has been under pressure for the last few years as global turbine sales slowed and its huge borrowings for expansion started denting its balance sheet.
The company needs to repay USD 360 million of foreign currency convertible bonds maturing in June and USD 207 million due in October. It will have to redeem the bonds as their equity conversion prices are way above the current value.
Suzlon's foreign currency bonds maturing this year have conversion prices of Rs 76.68 and Rs 97.26 per share, well above the current price of 20.85, making them unattractive for bondholders to convert into shares.
The company is confident of repaying its bondholders, said Kirti Vagadia, chief financial officer of Suzlon, a dding, it was in talks with banks to raise up to USD 300 million to pay the June tranche of the dollar bonds.
Suzlon will explore other options including selling some of its non-strategic assets to pay the October tranche, he told Reuters by phone on Friday.
"We continue to work on a few fund-raising initiatives - which are our internal accruals, non-critical asset sale and working capital release," he said.
Suzlon, the owner of Germany-based REpower, posted a loss of Rs 479 crore in the last fiscal year ended on March 31.
January-March quarter loss was Rs 300 crore on sales of Rs 6815 crore. Analysts were expecting a consolidated profit of Rs 7,210 lakh in the quarter, Thomson Reuters showed.
The company guided for a 30% rise in sales in this fiscal year that started on April 1 to Rs 27000 to Rs 28000 and an operating margin of 6%.
"The way our pipeline discussions are going on with our potential customers, I see we have a very good opportunity so far the order flow is concerned," said Vagadia.
Suzlon has an order backlog of Rs 41500 crore.