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Suzlon Energy jumps as German unit signs financing pact

According to reports, Suzlon Energy surged 5.66% to Rs 14.75 at 9:22 IST on BSE after the firm said its wholly-owned subsidiary has signed an agreement with a consortium of banks for a syndicated working capital facilities of Euro 850 million for the period of 3 years.

The announcement was made on Tuesday, 8 April 2014. The stock market was closed on that day, on account of Ram Navami.

Meanwhile, the S&P BSE Sensex was up 103.11 points or 0.46% at 22,446.56.

On BSE, so far 63,000 shares were traded in the counter as against average daily volume of 14.64 lakh shares in the past one quarter.

The stock hit a high of Rs 14.90 and a low of Rs 14.75 so far during the day. The stock had hit a 52-week high of Rs 15.10 on 22 April 2013. The stock had hit a record low of Rs 5.72 on 28 August 2013.

The stock had outperformed the market over the past one month till 7 April 2014, surging 31.82% compared with the Sensex’s 1.93% rise. The scrip had also outperformed the market in past one quarter, jumping 19.42% as against Sensex’s 7.97% rise.

The small-cap wind turbine manufacturer has equity capital of Rs 497.63 crore. Face value per share is Rs 2.

Suzlon Energy said that its wholly-owned subsidiary, Senvion SE, signed an agreement in late March with a consortium of banks headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG for a syndicated working capital facilities of Euro 850 million for the period of 3 years. This move enables Senvion SE to secure follow-on financing early for the credit facilities of Euro 750 miliion agreed in May 2012 for the period up to August 2014, Suzlon said.

In total, 14 international banks and credit insurance companies are participating in this financing with a term of three years, syndication of which was significantly oversubscribed, Suzlon said. Six globally reputed financial institutions and banks with excellent ratings have been added to the banks consortium. The financing structure remains largely unchanged and primarily consists of non-fund based (guarantee) facilities, Suzlon said in a statement.

Marcus A. Wassenberg, CFO of Senvion said, “This enhanced facility with long tenure is of significant importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects strong confidence of global banks and credit insurance companies in business fundamentals, company management and strategy of the company”.

Suzlon Energy reported a consolidated net loss of Rs 1075.25 crore in Q3 December 2013, lower than net loss of Rs 1154.53 crore in Q3 December 2012. Net sales rose 24.8% to Rs 5009.82 crore in Q3 December 2013 over Q3 December 2012.

The Suzlon Group is ranked as the world’s fifth largest wind turbine supplier, in terms of cumulative installed capacity and market share, at the end of 2013. The company’s global spread extends across Asia, Australia, Europe, Africa and North and South America with over 24,000 MW of wind energy capacity installed, operations across over 30 countries and a workforce of over 10,000. The Group -headquartered at Suzlon One Earth in Pune, India -comprises Suzlon Energy and its subsidiaries, including Senvion SE.

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