Suzlon seeks $300 mn loan for FCCB repayment

Suzlon Energy , the world’s fifth largest wind turbine maker, expects to tie up $300 million loans from banks by the end of June, a senior company official said on Monday.

Kirti Vagadia, head of corporate finance, said the money would be used to repay $360 million of foreign currency convertible bonds due by 27 July.The company recently announced that it will sell stake in its China manufacturing unit to China Power New Energy Development for Rs 340 crore.

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Suzlon is trying to dispose its non-critical group assets to reduce its long-term debt. The company’s debt now stands at over Rs 10,000 crore, out of which around Rs 6,000 crore in working capital loan and Rs 4,000 crore in long-term debt.

This year, the company has a repayment obligation of $750 million including a $550 million in foreign currency convertible bonds. Out of this it has already repaid $306 million worth of FCCB early month.

The company’s shares surged 3.17 percent to Rs 17.90 on BSE.

Agencies