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SBI-led consortium of banks sells Rs.8,000-Cr of Suzlon loans to REC, IREDA

Economic Times  

A group of 16 banks led by the State Bank of India (SBI) has sold more than INR 8,000 crore of Suzlon Energy loans to the Rural Electrification Corp (REC) and the state-owned Indian Renewable Energy Development Agency (IREDA). The loan sale was concluded even as the wind energy company was in the midst of its second bank-led restructuring initiated in 2020. The REC and IREDA-led refinance would extend the tenure of Suzlon's loans and would also bear a lower interest rate than what it was paying banks. According to the restructuring plan, the company had time till 2028 to pay off its dues at an average interest rate of 11%. The new refinancing plan envisages time till 2030 and an initial interest rate of 9.5%. In the consortium, SBI is the largest banker with INR 2,900 crore of dues outstanding, followed by BoB with INR 1,550 crore and IDBI Bank with INR 1,500 crore.