Suzlon becomes first company to sell bonds worth $647 million while in CDR
Beleaguered Suzlon Energy BSE 0.37 % today raised $ 647 million in bonds overseas, becoming the first domestic company to attract investors while already in debt recast, merchant bankers to the deal said. “Suzlon today successfully sold $ 647 million worth of five-year dollar Reg S (regulation S) bonds at a coupon of 4.97 per cent to the US treasury. This is the first ever credit enhancement bond sale by a domestic firm,” Rohit Chatterjee, Head of Investment and Corporate Banking at JP Morgan said. “It also is the first such issue from entire Asia, excluding Japan,” he added. In other words, this bond sale is unique as Suzlon is the first-ever domestic corporate to get a funding boosting while in CDR.
He further said the sale programme was comfortably oversubscribed but did not put a number to it. He added the co-lead banker to the deal was SBI BSE -0.34 % Caps. A Suzlon spokesperson refused to comment saying they have to first report to the exchanges before commenting to the media.