Suzlon Group redeems nearly Rs 192 crore FCCBs via internal accruals

Wind energy solutions provider Suzlon Group on Thursday said it fully redeemed $28.8 million (nearly Rs 191.6 crore) foreign currency convertible bonds (FCCBs) through cash payout from internal accruals.

In a BSE filing, Suzlon said, "It has been successfully repaid in cash, FCCBs worth $28.8 million (nearly Rs 191.6 crore) in principal amount along with the applicable 8.7% redemption premium".

"We have redeemed, in cash, $28.8 million FCCBs through internal accruals. Further, most of our remaining debt maturity profile is back ended. This gives us sufficient headroom to meet our operations and growth requirements. Our focused efforts towards debt reduction, liquidity optimisation and business ramp up are bearing tremendous results. There is a visible ramp up in our execution volume, order inflow and resultantly the cash flows," Suzlon Energy Chief Financial Officer Kirti Vagadia said.

Suzlon had issued a five-year FCCB series in April 2011 for $175 million (nearly Rs 1,164.23 crore) having a 5% coupon and April 2016 as maturity date.

In July 2014, pursuant to a cashless restructuring proposal, bondholders having FCCBs worth $146.2 million (nearly Rs 972.63 crore) in principal amount of the 5% April 2016 FCCB series opted to exchange their FCCBs for a new FCCB series maturing in July 2019.

"The balance $28.8 million (nearly Rs 191.6 crore) of the 5% April 2016 FCCB series, which was due in April 2016, now stand redeemed in full," the company said.