Senvion nails €850m refinancing
Germany-based wind turbine manufacturer Senvion has agreed a load of €850m ($1.17bn) from a consortium of banks, in a boost to its Indian parent company Suzlon.
Senvion – which has been the subject of repeated speculation over a possible flotation or sale by Suzlon – tied up the loan to refinance €750m of credit facilities expiring in August this year.
The latest three-year syndicated loan includes 14 international banks and credit insurance companies, and was “significantly oversubscribed”, said a statement.
The consortium is headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank.
The wider Suzlon group has been engaged in a lengthy battle to stabilise its finances and restructure its own debts, and Senvion – know until recently as REpower – is seen as pivotal to its future prospects.
Last month Suzlon refused to comment on reports that it is preparing to partially list Senvion on the London Stock Exchange in a bid to raise about $1.7bn.
Suzlon shares were trading about 12% higher in Mumbai today following news of the refinancing.
Senvion chief financial officer Marcus Wassenberg said: “Particularly in the current political and economic environment in our sector, the confidence of our banks and credit insurance companies is confirmation of Senvion’s strategic orientation.
“The €100m increase in our credit facilities also sends a strong signal to our customers.”