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Suzlon Group, the leading provider of renewable energy solutions in India, has officially signed definitive agreements to secure working capital facilities with REC Limited. The funds obtained through this arrangement will be utilized to fulfill the working capital needs associated with executing both existing orders and the anticipated orders in Suzlon’s future pipeline.
This strategic move is expected to facilitate a more rapid scaling of the company’s operations and optimize the utilization of its installed capacities. Overcoming challenges related to securing working capital in recent years, Suzlon has faced constraints in increasing volumes and expanding its order book. The approval of the current working capital facility by REC reflects the significant enhancement of the Company’s financial strength.
Himanshu Mody, Chief Financial Officer, Suzlon Group said, “We are delighted to partner again with REC Limited, one of India’s finest financial institutions with a deep understanding of power and renewable energy sectors. REC has a clear vision to support India’s ambitious renewable energy targets and has supported the Company’s initiatives in the past through debt refinancing, helping us become debt free. The current facility is non-fund based, which will primarily be off-balance sheet keeping us debt-free while significantly improving commercial terms with our customer and suppliers. This facility is rolling in nature and will allow the Company to execute current and future orders from its marquee customers.”
