 "Suzlon subsidiary AE-Rotor Holding BV announces redemption of SBLC backed bonds of $590 mn")
Renewable energy solutions providers Suzlon Group's subsidiary AE-Rotor Holding (AERH) BV has announced the redemption of SBLC backed bonds of $590.4 million. AERH had issued five-year bonds on March 28, 2013 for $647 million; having a 4.969% coupon rate ("Bonds") backed by SBLC facility from various lenders fronted by State Bank of India.
The company had availed itself of a credit facility of $590.4 million maturing in March 2018 from State Bank of India and other lenders at coupon rate of 3.30% backed by the SBLC.
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Suzlon Energy's Chief Financial Officer Kirti Vagadia said: "I am pleased to announce that our step down subsidiary in the Netherlands, AE-Rotor Holding BV has redeemed Bonds worth $590.4 million and also arranged a credit facility of equivalent amount at a competitive rate separately, majority of the SBLC facility lenders have consented to extend the same till 2023. The said credit facility would also get extended up to year 2023, post obtaining the required regulatory approvals.''
Suzlon Energy in a release said the prepayment of these bonds will require reversal of debit balance lying in Foreign Currency Monetary Item Translation Difference Account (FCMITDA) and will result into charge of Rs 267.42 crores in Q4 of FY16 on account of such accumulated foreign exchange loss. This loss would have, but for the prepayment, got spread over 9 quarters till March 2018. The foreign exchange loss in coming 8 quarters would be lower to the extent of amortisation charge of foreign exchange loss in respect of these bonds.