Suzlon may supply wind turbines to South Africa's Cennergi

Moneycontrol Bureau

Suzlon Energy has been selected as a preferred supplier by South Africa's Cennergi for a 138 mega watt wind energy project current under development in the African nation. Cennergi is an equal joint venture between South Africa's Exxaro Resources and Tata Power Co., India's largest private power utility. "Cennergi has chosen to use 66 of Suzlon's S97-2.1 mw turbines for the project located in the Eastern Cape Province of South Africa," it said. It will deliver the turbines under a full engineering, procurement and construction agreement if definitive agreements are reached, Suzlon added. Project construction is expected to commence towards 2013. Suzlon Energy shares were up 0.6% at Rs 25.30 on NSE in morning trade on Monday. Suzlon last week said it will raise around USD 40 million via sale of a block of wind farm assets, in its bid to optimize capital structure and meet its repayment obligations this year. Suzlon's FCCB (foreign currency convertible bonds) deadline is fast approaching and it may face USD 389 million in bond redemptions if investors holding the FCCBs don't choose to swap them for shares. Some media reports over the weekend said Suzlon was studying options to sell or list its German subsidiary REpower Systems in its bid to raise funds for the debt repayment.