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
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.
increase in our credit facilities also sends a strong signal to our customers.”