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India's wind giant Suzlon raises near $650mln via bonds

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(Globalpost/GlobalPost)

India's troubled wind energy giant Suzlon said Tuesday that it has raised $647 million by selling bonds, which will be used to repay loans as part of its debt restructuring plans.

Suzlon, once a star of India's green technology, called it an "important milestone" for the group and a key requirement in its corporate debt restructuring (CDR) plans with its creditors.

State Bank of India, the country's largest bank and a lender to Suzlon, had issued a letter of credit -- or a guarantee -- to potential bond buyers, which helped Suzlon to gain easier access to bond markets.

"The structure of the deal, which we believe to be the first ever dollar-credit enhanced bond from India, gives the group much needed head-room via low-cost funding," said Suzlon's finance chief Kirti Vagadia in a statement.

In February, Suzlon posted its biggest-ever quarterly loss, which had quadrupled to $211 million in the three months to December due to a combination of hefty debt and declining global demand for turbines.

Suzlon chairman Tulsi Tanti said then that "near-term challenges" for the wind energy sector would continue because macro-economic conditions and policy challenges affected markets worldwide.

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http://www.globalpost.com/dispatch/news/afp/130326/indias-wind-giant-suzlon-raises-near-650mln-bonds