Suzlon Group has successfully completed the $647-million bond issue through its wholly owned subsidiary AE Rotor Holding (AERH).
The US dollar-denominated bonds, backed by Stand-By Letter of Credit (SBLC) from State Bank of India, have a five-year bullet maturity.
The bonds with 4.97 per cent coupon have been provisionally rated at Baa2 by Moody’s and will be listed on the Singapore Stock Exchange (SGX).
The funds raised through this issue will be used to refinance the existing US dollar-denominated foreign currency debt of the issuer and its subsidiary.
Kirti Vagadia, Group Head-Finance, said: “In addition to the progress on the final documentation for CDR (corporate debt restructuring) package, this completes one of the key requirements of our CDR proposal, addressing our major bank debts.”
Suzlon is also in active dialogue with FCCB holders and banks to arrive at a consensual solution in the interest of all stakeholders, which is the last remaining step in its comprehensive liability management exercise, he added.