Suzlon Energy: Bond issue completed
- US$ 647 mn Five year Bond with 4.97% coupon
- Issue provisionally rated at Baa2 by Moody’s; Strong demand across investor base
- Successful refinancing of foreign currency debt
Pune: Suzlon Group today announced the successful completion of the bond issuance, by its wholly owned subsidiary AE Rotor Holding (AERH). The bonds are US dollar denominated and backed by Stand By Letter of Credit (SBLC) from State Bank of India and have a five year bullet maturity. The bonds will be listed on the Singapore stock exchange (SGX). The funds raised through this issue will be used to refinance existing US dollar denominated foreign currency debt of the Issuer and its subsidiary.
Speaking on the development, Mr Kirti Vagadia, Group Head Finance, said: “In addition to the significant progress made on the final documentation for CDR package, this marks an important milestone for the Group and completes one of the key requirements of our CDR proposal, addressing our major bank debts. “The unique structure of the deal, which we believe to be the first ever USD credit enhanced bond from India, gives the Group much needed head room via low cost funding and a back ended repayment schedule.” We also continue to be in active dialogue with FCCB holders and banks to arrive at a consensual solution in the interest of all stakeholders, which is the last remaining step in our c omprehensive liability management exercise.
Notes to the editor:
- J.P. Morgan acted as Sole Bookrunner and Joint Lead Manager, with SBICAP
(UK) Ltd also acting as Joint Lead Manager for the issue
- Moody’s Investor Services has assigned a provisional (P)Baa2 rating to the
bond issue, which is e quivalent to the credit rating of SBI for its senior unsecured foreign currency debt rating
About Suzlon Group:
The Suzlon Group is ranked as the world’s fifth largest* wind turbine supplier, in terms of cumulative installed capacity, at the end of 2011. The company’s global spread extends across Asia, Australia, Europe, Africa and North and South America with installations of over 21,000 MW and operations across 32 countries and a workforce of approximately 13,000. The Group offers one of the most comprehensive product portfolios ranging from submegawatt onshore turbines at 600 Kilowatts (KW), to the world’s largest commercially available offshore turbine at 6.15 MW with a vertically integrated, low cost, manufacturing base. The Group headquartered at Suzlon One Earth in Pune, India comprises Suzlon Energy Limited and its subsidiaries, including REpower Systems SE. Visit us at www.suzlon.com
*BTM Consult ApS
A part of Navigant Consulting
World Market Update 2012.
Investor Relations Contact:
Dhaval Vakil, Suzlon Energy Limited
Investor Relations, Mumbai
Tel: +91 (22) 6639 3252