India's Suzlon defaults on USD 1bn in loans

Wind farm in Brazil. Author: Suzlon Group. License: All Rights Reserved.

January 8 (Renewables Now) - Indian wind turbine maker Suzlon Energy Ltd (BOM:532667) unveiled on Tuesday it has defaulted on loans worth INR 72.56 billion (USD 1.01bn/EUR 908.8m).

A document released in a bourse filing shows that Suzlon got the specific loans from a consortium led by State Bank of India (BOM:500112) that includes 18 banks and the Indian Renewable Energy Development Agency (IREDA).

The nature of the obligations includes both fund-based and non-fund-based working capital, as well as term loans and a standby letter of credit. The date of default is March 19, 2019.

Now, the company has total outstanding debt from banks and financial institutions of INR 127.85 billion.

In July 2019, Suzlon defaulted on USD 172 million (EUR 154.6m) worth of bonds after the same happened in 2012 with a foreign currency convertible bonds (FCCBs) repayment.

(INR 10 = USD 0.139/EUR 0.125)

(USD 1.0 = EUR 0.899)

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