Suzlon’s unit to get Euro 850 million as working capital; stock gains

MUMBAI: Shares of Suzlon Energy surged higher in trade after its Germany-based wholly owned subsidiary Senvion SE signed an agreement with a consortium of banks for syndicated working capital facilities of EUR 850 million for the period of 3 years.

The consortium of banks is headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG.

This move enables Senvion SE to secure follow-on financing early for the credit facilities of EUR 750 million agreed in May 2012 for the period up to August 2014.

"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.

At 09:25 a.m., the stock was at Rs 14.78, up 5.87 per cent, on the BSE. It touched a high of Rs 14.90 and a low of Rs 14.50 in trade today.