Suzlon inks loan deal worth Rs 7,000 cr; expert advises investors to exit stock

NEW DELHI: Wind turbine maker Suzlon has signed a loan deal worth 850 million euros with a consortium of banks for funding its working capital requirements and expansion plans.

The stock rallied more than 12% in Friday's trade. Now, experts are advising investors to exit the stock.

"I have heard news that Suzlon is likely to cut its debt by $1.2 billion. It is a good move by the company though I would like to advise investors to exit the stock on rally as going ahead the company would have the assets but business would be not there hence exiting the stock would make sense."

"Suzlon Group's German subsidiary Senvion SE signed an agreement for a loan of 850 million euros (over Rs 7,000 crore) with consortium of banks for a three-year period," Suzlon said in a statement.

Senvion SE is a wind energy turbine manufacturer. The mandated lead arrangers for this financing are - BayernLB, Commerzbank Aktiengesellschaft, Deutsche Bank AG, BNP Paribas, Fortis SA/NV, HSBC Trinkaus & Burkhardt AG and Royal Bank of Canada.

"This enhanced facility with long tenure is of importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects strong confidence of global banks in business fundamentals of the company," Marcus A Wassenberg, CFO of Senvion said.