Suzlon prints India’s first credit-enhanced dollar bond

Suzlon Energy, the world’s fifth-biggest wind-turbine maker, closed a $647 million bond on Tuesday the first credit-enhanced dollar bond from India.

Featuring a standby letter of credit from State Bank of India SBI, the bond printed at the widest guarantee premium in the market, according to a banker. However, Suzlon was at least able to raise the money. The financially troubled company defaulted on a $200 million zero coupon convertible bond last year, so would have struggled to come market without SBI’s backing.

SBI is one of Suzlon’s biggest lenders and has a large exposure to the company. The funds raised will be used to...