Suzlon to raise $300mn via FCCB issue

Wind power major Suzlon Energy will raise $300 million through issue of foreign currency convertible bonds (FCCB), which are proposed to be listed on the Singapore Stock Exchange.

The fund raising comes in the midst of Suzlon's plans to acquire German wind turbine manufacturer REpower Systems AG, in which it has a 30.9% stake.

It has raised its bid gradually to euro 150 per share to acquire REpower to compete with French nuclear energy group Areva, which had offered euro 140 per share.

The FCCBs with a maturity period of five years and one day could be convertible at Rs 1,800, a premium of 59.59% over the closing price of Suzlon's shares at Rs 1,127.90 yesterday on the Bombay Stock Exchange (BSE).

Deutsche Bank is the sole bookrunner of the transaction, the company informed the exchange.