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Suzlon gains as REpower gets growth finance of EUR 750 mn-news01032012


Shares of Suzlon Energy rose nearly 10%, touching the weekly high of Rs29.20, after REpower Systems SE receives growth finance of EUR 750.0 million.

Detailed story:

Wind turbine maker Suzlon Energy  said its German subsidiary REpower Systems SE has signed an agreement with a consortium of banks headed by BayernLB, Commerzbank Aktiengesellschaft  and Deutsche Bank for a syndicated loan of Euro 750 million.

The loan has a term of 2.5 years and in total 13 German, international banks and credit insurance companies are participating in the loan, it said on Thursday.

This move enables REpower to secure follow-on financing early for the credit facilities of Euro 600 million agreed in May 2009, Suzlon said.

'Increasing our credit lines by 25% has put us in a good position to continue the profitable growth course seen in past years. Actually, we are growing faster than our competitors and are gaining significant market shares,' said Derrick Noe, REpower's CFO.

Noe expects REpower will report double-digit sales and earnings growth in the current and next fiscal year.
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