Suzlon Group executes definitive agreement with REC for securing working capital facilities

New Delhi: Suzlon Group on Tuesday said it has executed a definitive agreement with state-owned REC Ltd for securing working capital facilities.

REC, under Ministry of Power, is a non-banking finance company (NBFC) focusing on power sector financing in India.

In a statement, Suzlon said it will utilise the facility for meeting working capital requirements for the execution of its current order book and future order pipeline.

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It will enable the company to ensure faster ramp-up of its operations and improve the utilisation of its installed capacities. "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," Himanshu Mody, Chief Financial Officer, Suzlon Group said.

Pune-based Suzlon Group is one of the leading renewable energy solutions providers in the world with 20.3 gigawatt (GW) of wind energy capacity installed across 17 countries.

In the statement, the company did not provide any financial details.

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