Suzlon Group wraps-up debt restructuring process
Growth potential of Indian Wind Energy sector largely untapped
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Suzlon Group, India’s largest renewable energy solutions provider has announced the completion of its debt restructuring with the unanimous approval of its secured lenders.
According to the terms of restructuring, term debt has been reduced substantially with interest of 9 percent per annum repayable over 10 years starting 1st July, 2020. Balance Debt of secured consortium lenders has been replaced by 0.01 percent Optionally Convertible Debenture (OCD) of the Company and 0.0001 percent Compulsorily Convertible Preference Shares (CCPS) of its subsidiary redeemable or convertible in 20 years.
Tulsi Tanti, Founder and CMD of the Suzlon Group expressed his gratitude to the consortium of lenders led by State Bank of India and the company for working together to protect the interests of all the stakeholders involved. J P Chalasani, Group CEO said capital infusion of Rs 392 crores by promoters, key shareholders and various stakeholders demonstrates their commitment and confidence in Suzlon.
He added that debt restructuring has resulted in a stronger balance sheet enabling the company to focus on capturing the tremendous growth potential in the Indian Wind Energy sector. Swapnil Jain, CFO, said the company has reduced its fixed cost steeply and has brought down the interest costs by more than 70 percent.