Suzlon Group’s wholly-owned subsidiary Senvion SE has signed a new agreement with a consortium of banks to raise €850-million working capital. The agreement, signed in late March, is for a three-year period.

The consortium of banks was headed by BayernLB, Commerzbank Aktiengesellschaft and Deutsche Bank AG. This move enables Senvion SE to secure follow-on financing early for the credit facility of €750 million agreed in May 2012 for up to August 2014.

About 14 international banks and credit insurance companies are participating in this financing. Six globally reputed financial institutions and banks with excellent ratings have been added to the banks' consortium. The financing structure remains largely unchanged and primarily consists of non-fund based (guarantee) facilities.

“This enhanced facility with a long tenure is of significance importance for the growth of the company and the oversubscription of the same with new additions to the consortium clearly reflects the strong confidence of global banks and credit insurance companies in business fundamentals, company management and strategy of the company,” Marcus A. Wassenberg, chief financial officer at Senvion, said.

>rajesh.kurup@thehindu.co.in