Suzlon Group successfully completes US$ 647 mn bond issue

Suzlon Group has successfully completed 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 comprehensive liability management exercise.

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 equivalent to the credit rating of SBI for its senior unsecured foreign currency debt rating.

The Suzlon Energy Ltd stock closed the day at Rs.13.50, up by Rs.0.05 or 0.37%. The stock hit an intraday high of Rs.13.85 and low of Rs.13.35.

The total traded quantity was 43.16 lakhs compared to 2 week average of 5.84 lakhs.

Source : Equity Bulls

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