Suzlon Group has announced the completion of a $647 million bond issuance by its wholly owned subsidiary AE Rotor Holding. Suzlon says the funds raised will be used to refinance existing U.S. dollar-denominated foreign currency debt of the issuer and its subsidiary.
The bonds, which will be listed on the Singapore stock exchange, are backed by the State Bank of India and have a five-year bullet maturity.
Kirti Vagadia, Suzlon's head of finance, says, ‘In addition to the significant progress made on the final documentation for CDR package, this marks an important milestone for the group and completes one of the key requirements of our CDR proposal, addressing our major bank debts.
"The unique structure of the deal, which we believe to be the first ever USD credit enhanced bond from India, gives the Group much-needed head-room via low-cost funding and a back-ended repayment schedule," adds Vagadia.