Suzlon sells off Indian wind farms for $40 million
Suzlon has sold off a block of Indian wind assets for USD40 million as it looks to reorganize its capital structure. The majority of the wind farms are located across the state of Tamil Nadu and the sale is expected to close in mid-May.
The company has not disclosed the buyer but Kirti Vagadia, recently-appointedas, said the assets were ‘non-core’ and are part of its plan outlined in February. “This is a modest – but important – step forward in our strategy to optimize our capital structure and meet our repayment obligations this year,” he said.
There have been rumors that the India-headquartered Suzlon may be looking to sell off its now wholly-owned subsidiary REpower, which it acquired in stages starting in 2007, paying EUR63 million (USD90.5 million) for the remaining 5 percent trance in August last year.
Last month, however, Suzlon secured a EUR750 million (USD999 million) syndicated loan to refinance EUR600 million credit facilities Repower agreed in May 2009.
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.