Wind energy major Suzlon has announced it has successfully repaid in cash, Foreign Currency Convertible Bonds worth $28.8 million in principal amount, along with the applicable 8.7 per cent redemption premium.

This was part of the 5 per cent April 2016 FCCB series which have now been redeemed in full and will cease to exist, and the repayment has been made in accordance with the terms and conditions of the FCCBs the company said in a filing to the BSE.

Kirti Vagadia, Chief Financial Officer, Suzlon Energy, said, “We have redeemed, in cash, $28.8 million of FCCBs through internal accruals. Further, most of our remaining debt maturity profile is back ended. This gives us sufficient headroom to meet our operations and growth requirements. Our focused efforts towards debt reduction, liquidity optimisation and business ramp up are bearing tremendous results. There is a visible ramp up in our execution volume, order inflow and resultantly the cash flows.”

Suzlon had issued a 5-year FCCB series in April 2011 for $175 million with a 5 per cent coupon rate and April 2016 as maturity date.

In July 2014, pursuant to a cashless restructuring proposal, bondholders having FCCBs worth $146.2 million in principal amount of the 5 per cent April 2016 FCCB series opted to exchange their FCCBs for a new FCCB series maturing in July 2019. The balance $28.8 mn of the 5 per cent April 2016 FCCB series which were due in April 2016 now stand redeemed in full.

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