Suzlon redeems FCCBs worth Rs 1,993 cr

Wind turbine maker Suzlon Group today said it has repaid $360.2 million (about Rs 1,993 crore) worth foreign currency convertible bonds.

These bonds were due today.

The money to redeem the Foreign Currency Convertible Bonds (FCCBs) were raised through many ways including proceeds from sale of non-critical assets and new loan facilities from its lenders, Suzlon said in a statement.

The June FCCBs comprised two series -- the first with a redemption value of $306.8 million, and a second series with a redemption value of $53.4 million, it said.

Suzlon Group CFO Kirti Vagadia said the company as redeemed, in cash, its FCCB liability of $360 million due today.

"We have redeemed these FCCBs through a combination of instruments — including the proceeds from the sale of non-critical assets, internal accruals and the new facilities from our senior secured lenders...," Vagadia noted.

For the repayment of FCCBs, Suzlon secured new lines of credit worth $300 million from a consortium of lenders. SBI Caps was the lead arranger, a Suzlon spokesperson said.

The balance was met through internal accruals and the block sale of a non-critical wind farm asset in India, the spokesperson added.

On June 11, Suzlon had announced that bondholders approved its "request for up to a 45-day extension of maturity on our June tranche of FCCBs".

Suzlon's net debt touched Rs 11,165 crore at the end of March 2012.

In the 2012 March quarter, Suzlon incurred a net loss of Rs 300.24 crore, primarily due to higher interest costs and lower revenues.

The company had a net profit of Rs 211.05 crore in the year-ago period. These figures are post deductions of share in associate's profit and minority interest.