Investors relieved as Suzlon’s REpower secures $1 bln funding
India’s largest wind-turbine maker, Suzlon Energy, has secured a loan of EUR750 million (USD999 million) for its REpower unit, easing investor concerns that it would not be able to pay back bondholders, according to a Bloomberg report.
The syndicated loan was granted by a consortium of banks led by BayernLB Holdings AG, Commerzbank AG and Deutsche Bank AG (DBK) with a 2.5 year term, the company said in a statement. The loan will refinance the existing EUR600 million credit facilities Repower agreed in May 2009, according to the Hamburg, Germany-based company.
Suzlon had its biggest one-day jump in more than a year, rising 11.5 per cent. It closed at a nine-day high of 29.7 rupees in Mumbai, said Bloomberg.
Suzlon may face USD569 million in bond redemptions this year if investors holding its foreign currency convertible notes choose not to swap them for shares.
REpower expects “double-digit growth” for both sales and earnings for this and the next financial year. The finance will help cover the increased guarantee needs of Repower reflecting business opportunities in international onshore and offshore wind markets, according to the statement.