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Suzlon to borrow $1.75 bn for Repower acquisition

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Bloomberg Mumbai
Last Updated : Feb 05 2013 | 1:20 AM IST
Suzlon Energy, a wind-turbine maker, hired three banks to arrange a ¤1.3 billion ($1.75 billion) loan to buy a stake in Germany's Repower Systems, according to a term sheet sent by one of the banks.
 
The company, run by Tulsi Tanti, hired ABN Amro Holding NV, ICICI Bank and State Bank of India. The loan will be used to refinance existing debt and to pay for the acquisition.
 
India's biggest wind-turbine maker last month won a bidding war against France's Areva, buying a 25 per cent stake with an offer that valued Repower at ¤1.35 billion.
 
Governments worldwide are turning to wind power for their energy needs to cut carbon emissions and reduce dependence on coal and crude oil.
 
The loan will consist of four parts with an average maturity of about 29 months and an average interest margin of 1.6 percentage points above the Euro Interbank Offered Rate, according to the term sheet.
 
The three-month Euribor was last fixed at 4.124 per cent on June 1.
 
Suzlon took out a 450 million euro loan, higher than the initial target of 400 million euros, in March last year to buy wind-turbine gearbox maker Hansen transmissions International NV for ¤465 million.
 
That credit was arranged by Barclays, ICICI and Deutsche Bank, which brought in State Bank of India as the fourth lender.
 
Suzlon's offer to Repower stakeholders, which concluded on May 25, boosted its stake to 33.85 per cent, Suzlon said on June 2.

 
 

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First Published: Jun 05 2007 | 12:00 AM IST

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