Suzlon Energy is in talks with JP Morgan about selling non-convertible debt instruments through its fully owned subsidiary Suzlon Global Services in order to raise over 2,000 crore. According to one
of them, the renewable energy company will prepay its term debt with the proceeds from the offering. In December 2022, Suzlon Energy had a debt of 2,035 crore. The proceeds from the fundraiser were used to pay down $35,931,200 in foreign currency convertible bonds (FCCBs) that were scheduled to mature in 2032. A spokesman for Suzlon declined to comment on the anticipated financing but noted that the company is constantly looking for innovative methods to strengthen its balance sheet.
A representative for JP Morgan declined to comment. Suzlon Energy was finally able to generate a positive profit after tax on an operational basis in Q2FY23 after five years. Since FY18, the company has experienced a number of restructurings with its lenders because of the significant increase in debt.
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