REpower

Suzlon Energy has been told to raise INR5,000 crore (USD921.72m) or sell its prized subsidiary REpower by creditors who are making the demands before they will agree to lower interest rates.

Suzlon Energy is aiming to raise as much as USD500 million, mostly through a bond sale, to meet debt payments in June.

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.

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.

Indian wind company Suzlon will complete its purchase of German turbine manufacturer REpower through the acquisition of the remaining five per cent stake it did not previously own. According to the Wall Street Journal, Suzlon has agreed to pay €63m (USD90.5 million) for the remaining minority stake. This follows a number of equity buy-outs by Suzlon, most recently in April when it raised its stake to 95.16 per cent.