Suzlon Energy Ltd To Exit Non Core Assets

Suzlon Energy is planning to raise up to $400 Mn by selling 15 of its non-core assets to partly retire the debt of nearly Rs.14,600 Cr, according to ET.

The company, which got a lifeline from its lenders in January with Rs.9,500 Cr debt restructuring, has planned to reduce debt and interest by selling non-core assets and cut its fixed costs by nearly 20%.
 

The company has already initiated the process to sell stake in its wholly-owned Chinese subsidiary Suzlon Energy Tianjin, through which it will realise $60 Mn and the entire proceeds from these planned sales will go into retire debt.

Suzlon is also planning to sell stake in its forging business SE Forge and selling some of their components manufacturing facilities in the country.

This is a part of Suzlon's cost cutting and debt reduction programme.

The company this March raised $647 Mn in overseas bond sale, which was guaranteed by its lead banker SBI as part of its plan to retire its $650 Mn forex loans.

Late January Suzlon managed a Rs.9,500 Cr CDR out of its Rs.14,568 Cr loans from 19 lenders led by State Bank of India. Following the CDR, 21 banks and other financial institutions would hold 32.1% stakes.

Last year Suzlon Energy Limited has raised 750 Mn Euros for its wholly owned subsidiary RePower Systems SE.

Courtesy: Deal Curry