Senvion ups working capital by EUR 150 million

GERMANY: Senvion (formerly Repower) has extended its working capital facilities with a consortium of 14 banks by EUR 150 million to EUR 850 million.

Senvion's range includes its 126-6.2MW turbine

BayernLB, Commerzbank and Deutsche Bank head the consortium that has offered the loan for a period of three years.

The financing will be used solely as "working capital" a spokesperson for the company's parent firm, India's Suzlon, said.

Claims in the Indian press that Senvion is to buy part of Suzlon's manufacturing and O&M businesses before a possible listing of the German subsidiary on the London Stock Exchange have been denied strongly by Suzlon.

The deal is the extension of a EUR 750 million facility agreed with the consortium in 2012. The financing structure remains largely the same and consists primarily of guarantee facilites.

Suzlon and its subsidiary Senvion have been struggling with debts since a drop off in orders over the last few years. This has led to job cuts and facility closures around the world.