Suzlon Climbs After German Unit Gets $1.2 Billion in Funding

Apr 09, 2014 7:03 am ET

(Updates with trading volumes in second paragraph.)

April 9 (Bloomberg) -- Suzlon Energy Ltd., an indebted Indian wind-turbine maker, rose to the highest in more than a year in Mumbai trading after its German unit got 850 million euros ($1.2 billion) in funding.

Suzlon rose 7.2 percent to 14.95 rupees, closing at the highest since March 18, 2013. Trading volumes were almost seven times the three-month daily average, according to data compiled by Bloomberg.

Senvion SE, the company’s Hamburg-based unit formerly called Repower Systems, obtained the three-year credit line from 14 lenders led by Bayerische Landesbank, Commerzbank AG and Deutsche Bank AG, Suzlon said after markets closed yesterday. It replaces a 750 million-euro syndicated loan expiring in August.

Suzlon is seeking to raise cash after failing to repay $209 million of foreign-currency notes in October 2012 in India’s biggest convertible-bond default. The company sold an Illinois wind farm to EverPower Wind Holdings Inc., backed by British private-equity financier Guy Hands, the companies said today in e-mailed statements, without providing a sale value.

Suzlon expects to recover about $90 million from the Illinois farm, Kirti Vagadia, group head of finance, said in February. The sale ended a two-year effort to recover a $228 million loan Suzlon made to the project to finance a turbine sale.