Suzlon rallies over 10% as board approves cashless restructuring of FCCBs

NEW DELHI: Suzlon Energy Ltd rallied as much as 10.1 per cent in morning trade on Monday, after its board of directors over the weekend approved a proposal for cashless restructuring of its existing foreign currency convertible bonds (FCCBs).

At 09:25 a.m.; Suzlon Energy pared some of the morning gains but was trading 6.1 per cent higher at Rs 14.29. It hit a low of Rs 13.75 and a high of Rs 14.74 in trade today.

The company and an ad-hoc committee of bondholders ended negotiations and agreed on the proposed restructuring terms, PTI reported. The ad-hoc committee comprises select bondholders with significant holdings across each of the existing bonds, the world's fifth-largest wind turbine maker said in a statement.

As per the PTI report, the issue size will be about USD 485 million, assuming the zero per cent October 2012 bonds, 7.5 per cent October 2012 bonds, zero per cent July 2014 bonds and 50 per cent of the 5 per cent April 2016 bonds are substituted.

The restructured bonds will have a maturity of five years and one day from the issue date. They will mature in 2019-20 and the conversion price will be Rs 15.46, the release said.