Suzlon bondholders OK $547m deal

Suzlon has secured approval for the restructuring of its Foreign Currency Convertible Bonds (FCCBs), and will issue new bonds worth $546.9m to resolve a financial headache that has plagued the Indian wind group since 2012.

Suzlon told the Mumbai stock exchange its bondholders had agreed a package that replaces existing bonds due in 2012, 2014 and 2016 with new FCCBs maturing on 16 July 2019.

The new bonds – which Suzlon plans to issue on 15 July – will have a coupon rate of 3.25% for the  first 18 months and then 5.75%.

Agreement over the FCCBs ends a dispute that has hung over Suzlon since 2012, when it was forced to ask creditors for more time to settle the bonds and became locked in negotiations over their settlement.

The turbine-maker has spend the last few years battling to restructure its finances – but said that process is now drawing to a close.

Finance chief Kirti Vagadia said: “With this, Suzlon now successfully completes its last leg of comprehensive liability management program that we initiated in 2012.

“In the circumstances, the agreed bond restructuring package is an optimum solution for all our stake-holders. The Suzlon Group remains thankful to the secured lenders and bondholders for their patience and constructive approach for this arrangement.”

Suzlon chairman Tulsi Tanti added: “The bondholders, by approving the restructuring have reposed confidence in Suzlon and paved the path for growth. We recently embarked on a high-growth trajectory by reclaiming our number one spot in domestic markets."