Suzlon divests part of wind energy farm for Rs200 crore to reduce debt
05 Apr 2012
Suzlon Energy, the world's fifth-largest wind turbine producer, yesterday said that it has sold a part of its wind energy farm to an unidentified private utility for $40 million (Rs200 crore) in order to raise money for upcoming debt payments.
The Pune-based company did not identifying the wind energy farm, or the buyer.
Suzlon said that the transaction would conclude by mid-May after completion of due diligence and the required approvals.
Speaking on the development, Kirti Vagadia, chief financial officer of Suzlon Group, said: ''I am pleased to announce that we are divesting in certain non-core assets and are set to raise approximately $40 million as per our plan outlined in February this year. This is a modest- but important step forward in our strategy to optimise our capital structure and meet our repayment obligations in this year.''
Sulzon has to pay its foreign currency convertible bondholders $569 million in the next seven months, including $360 million due in June.
Suzlon also plans to divest stake in its components business to raise funds to repay debt.
Analysts had earlier said that Sulzon may have to sell its REpower subsidiary in order to meet its debt obligations, especially after its US client Edison International said late last month that it will not be able to make a $206 million payment until at least February 2013.
