Suzlon Energy completes $647mn bond issue
Suzlon Energy on Tuesday said it has successfully completed a USD 647 million bond issue, which will help the wind turbine maker pare existing foreign currency debt and also give more headroom in its efforts to repay its lenders, who recently approved its corporate debt restructuring package.
March 26, 2013 / 14:04 IST
Moneycontrol Bureau
Suzlon Energy on Tuesday said it has successfully completed a USD 647 million bond issue, which will help the wind turbine maker pare existing foreign currency debt and also give more headroom in its efforts to repay its lenders, who recently approved its corporate debt restructuring package. The US dollar denominated bonds issued by Suzlon's wholly owned subsidiary -- AE Rotor Holdings -- are backed by stand-by letter of credit from State Bank of India and have a five year maturity with a coupon rate of 4.97 percent. They will be listed on the Singapore Stock Exchange.The funds raised will be used to re-finance existing US dollar denominated foreign currency debt of the issuer and its subsidiary, it said. "This completes one of the key requirements of our CDR proposal, addressing our major bank debts. The unique structure of the deal, which we believe to be the first ever USD credit enhanced bond from India, gives the group much needed headroom via low cost funding and a back-ended repayment schedule," said Kirti Vagadia, group head - finance.Suzlon also said it continues to be in active dialogue with foreign currency convertible bond holders and banks to arrive at a consensual solution, which is the last remaining step in its comprehensive liability management exercise.At 9:35 hrs, Suzlon shares were trading flat at 13.50 on NSE. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
