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.”