Suzlon's German arm ties up euro 850-mn loan

Senvion, Suzlon’s German subsidiary, on Tuesday announced it had tied up euro 850 million in loans. The agreement, for syndicated working capital facilities for three years, was signed with a consortium of banks headed by Bayern, Commerzbank and Deutsche Bank in late March.

“This move enables Senvion to secure follow-on financing early for the credit facilities of euro 750 million agreed in May 2012, for the period up to August,” Suzlon said in a press release.

Marcus A Wassenberg, chief financial officer of Senvion, said, “This enhanced facility with a long tenure is of significance for the growth of the company and the over-subscription of the same.

The additions to the consortium clearly reflect the strong confidence of global banks and credit insurance companies in business fundamentals and the company’s management and strategy.”

The financing was carried out by 14 international banks and credit insurance companies and the syndication were significantly oversubscribed. “The financing structure remains largely unchanged, primarily comprising non-fund-based (guarantee) facilities,” Suzlon said.

It is expected Senvion will be listed on the London Stock Exchange.

On Tuesday, the Suzlon stock closed at Rs 13.96 on the BSE, up 12.4 per cent.

Sells US farm
Meanwhile, the company disposed of its Big Sky wind farm in Illinois, US, to EverPower Wind Holdings, the US Federal Energy Regulatory Commission said in a statement on its website. The move is aimed at cutting its Rs 17,000-crore ($2.8-billion) debt.