Suzlon arm AERH redeems bonds worth USD 590.4 mn

Wind turbine maker Suzlon Energy today said its step-down subsidiary AE-Rotor Holding (AERH) has redeemed bonds worth USD 590.4 million (about Rs 3,900 crore) and also arranged a credit facility of the same amount at a competitive rate.
The bonds were backed by SBLC (standby letter of credit) from various lenders including State Bank of India (SBI).
The Netherlands-based AERH had issued 5 year bonds on March 28, 2013 for USD 647 million (about Rs 4,205 crore) with a coupon rate of about 5 per cent.
The subsidiary has availed a credit facility of USD 590.4 million maturing in March 2018 from SBI as well as branches of Export-Import Bank of India in London, at a coupon rate of 3.30 per cent and repaid USD 590.4 million to the bondholders on April 29, 2016, Suzlon Energy said in a statement.

SBLC is a written commitment of a bank to pay a certain amount of money on behalf of it's client in favour of a beneficiary in case the client is not able to fulfill its financial obligation.
"I am pleased to announce that our step-down subsidiary AE-Rotor Holding has redeemed bonds worth USD 590.4 million and also arranged a credit facility of equivalent amount at a competitive rate," Suzlon Energy CFO Kirti Vagadia said.
"Separately, majority of the SBLC facility lenders have consented to extend the same till 2023 and the credit facility would also get extended up to year 2023, post obtaining the required regulatory approvals," he added.