Suzlon seeks 4-month extension for FCCBs

.The Suzlon Group has requested foreign currency convertible bondholders a four-month extension. The FCCBs are due for conversion in October. FCCBs are a type of bond issued in foreign currency. They carry a coupon rate as well as conversion options into equity at a pre-determined price. Suzlon Energy has issued $200 million zero coupon convertible bonds and $20.8 million 7.5-per cent convertible bonds, both are due in October. The meetings of the bondholders are expected to be held on October 10. A company spokesperson in a statement said: “We intend to redeem the outstanding October FCCBs at the end of the proposed four month extension, subject to requisite approvals. We are actively working on various sources of funding; including sale of non-critical assets, fresh debt, equity-linked and/or equity fund raising through the domestic and international capital markets and additional secured leverage at an international subsidiaries-level by optimally re-balancing our debt.”