Suzlon arm gets €850-m working capital loan
09 Apr 2014
Senvion SE (formerly REpower), the Germany-based wholly-owned subsidiary of the Suzlon Group, has secured a €850 million working capital loan from a consortium of 14 banks led by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG.
Senvion and the banking consortium signed an agreement for the three-year credit facility ending March 2017, last month.
Senvion had received €650 million working capital loan during the first three years, and a consortium of 11 banks gave it a credit of €750 million for the period from May 2012 to August 2014.
The agreement enables Senvion SE secure follow-on financing early.
Suzlon's acquisition of the erstwhile REpower in 2008-09 for around Rs9,000 crore, account for a significant part of the parent's consolidated debt, which is today estimated at Rs13,000 crore.
Analysts estimate Senvion to have a turnover of €1.6 billion, to be debt-free with a cash reserve of nearly €275 million on its books.
The latest deal is especially significant as Suzlon's financial track record and balance sheet are not seen to be particularly healthy in India, the analyst added.