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Suzlon Energy raises $150 mn FCCB- conversion price at Rs. 54.01/sh

As Panchabuta had reported in may last year, Suzlon restructured part of its US$500 million (Rs. 2,235 crore today) outstanding FCCB (Foreign Currency Convertible Bonds), due in fiscal 2012, resetting the conversion price at Rs. 92 a share. FCCBs worth about US$35 million are coming up for redemption in 2012.

Since, they had gone on record stating that they expected 2010 to be a down year for wind, as companies in Europe were postponing orders, as the debt crisis makes it difficult to raise funds for renewable-energy projects. This is also primarily due to reluctance by developers to move on new wind projects amid diminished demand.

Suzlon Energy, reported its latest quarter numbers in February this year. According to the company, Net sales fell 20.7% Rs. 4432.90 crore in Q3 December 2010 over Q3 December 2009.

The company reported a stand-alone net profit for the third-quarter ended December 31, 2010 of Rs.1.20 crore, compared with a net loss of Rs.285.14 crore in the corresponding quarter last year. Total revenue grew to Rs.1,292.24 crore from the Rs.810.50 crore for the same period last year.

On a consolidated basis, the company reported a net loss of Rs.253.57 crore, whereas it reported a net profit of Rs.14.10 crore in Q3FY10. Total revenue was Rs.4,528.25 crore. While it was Rs.5,625.90 crore in the year-ago quarter.  Net debt-to-equity ratio was 1.5 times.

Suzlon  announced an impressive cumulative 35% rise in orders  from October to a record $7.3 billion, equal to about 5,000 MW of power capacity on a consolidated basis.The Suzlon Wind orderbook stood at 2,578 megawatts (MW) (Rs 14,600 crore), with 1,624 MW (Rs 9300 crore) in domestic orders and 954 MW (Rs 5300 crore) in international orders as on 4 February 2011.

The company ran into problems after the debt on its books kept mounting even as profits were declining. In 2010, Suzlon’s secured lenders gave it a two-year moratorium on principal repayments of Rs. 14,750 crore that were due to start in March 2012.

According to reports, Suzlon Energy Tuesday said it has set the initial conversion price of the USD 150 million convertible bonds at Rs 54.01 per share. Suzlon had Monday announced it would issue foreign currency convertible bonds due in 2016. The issue of bonds is also subject to an upsize option of up to $50 million, which has not been exercised as on date, the wind turbine maker said in a notice to the stock exchanges.

Suzlon Energy seeks to list them on the Singapore Stock Exchange, it said. Macquarie Capital (Singapore) and The Royal Bank of Scotland, Hong Kong were the lead managers to the transaction. As of December 31, Suzlon had a consolidated debt of around Rs 12,000 crore.

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