Suzlon to raise Rs 5000 cr through FCCB to repay debts, expand

New Delhi, May 15 (UNI) Wind Energy major Suzlon Energy Ltd (SEL) today said it will raise Rs 5,000 crore through Foreign Currency Convertible Bonds (FCCB), for its further expansion plans as well as repaying pending debts.

''Of the total Rs 5,000 crore, approved by the board, Rs 2,500 crore will be used to pay off the debt the company took in March, for the acquisition of the Belgium-based Hansen Transmission International NV, while the remaining amount will be put into expanding backward integration facilities in India,'' SEL CMD Tulsi R Tanti told reporters here.

SEL had fully acquired the company on May 17, for a sum of 430 million euros.

Mr Tanti further informed that ''While the first 500 million dollars would be raised by FCCBs which are likely to come around in this quarter, we have not yet decided as to how we will raise the remaining amount. But we are looking at Global Depositary Receipts (GDR) and American Depositary Receipts (ADR) as our options,'' Mr Tanti said.

Asked as to why the company chose the FCCB option, over a domestic one to raise the amount, Mr Tanti said, ''It is a good financial instrument for us and is more successful in the Indian market.'' Mr Tanti further said the company is also looking at tapping the Chinese and American markets with the setting up of two plants in Midwest in the US and Tianjin in China.

''We are setting up the largest integrated plant in China at an investment of 60 million dollars and a 600 MW capacity. Around 500 people will be employed in our Chinese unit. Our other plant in the US with a capital investment of 25 million dollars will have a 600 MW capacity with a 300 employer base.'' Asked about when both the plants will be operational, Mr Tanti said, ''Both plants which will be 100 per cent subsidiaries of Suzlon India, should be ready by August-September.'' SEL, which has a 6.1 market share in the global market is also looking at increasing its stake in the international market, with the setting up of these plants.

''Earlier 10 per cent of our business was in the international market, with 90 per cent in the domestic market. However, from this financial year, we are hoping to change the equation to 60 per cent in the domestic market and 40 per cent in the international market,'' Mr Tanti said.

Besides the US and China, the company will be focusing on the wind energy markets in emerging Europe markets like Italy, Greece, Portugal, Australia, New Zealand and South Korea.

UNI RA CS HS1536