Suzlon Group has 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 dollardenominated 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 comprehensive liability management exercise.
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News published on 26 / 03 / 2013 by Bharat Vasandani