Suzlon Energy Ltd. (SUEL), India’s biggest maker of wind turbines, plans to raise as much as 50 billion rupees ($1.1 billion) selling bonds and shares, the company said in a statement to the Bombay Stock Exchange. The company is seeking to pay down debt and revive earnings to levels before the global financial crisis in 2009, which depressed worldwide turbine sales and led to a supply glut that continues to weigh on the industry. Suzlon on July 30 reported an unexpected first-quarter net income of 600 million rupees, compared with a 9.1 billion-rupee loss a year earlier after its sales rose at the fastest pace in more than two years. Vestas Wind Systems A/S, the world’s largest wind-turbine maker, saw its loss double to 85 million euros ($121 million) in the first quarter, while Sinovel Wind Group Co., the second largest, said profit growth slowed to 1 percent. “This quarter has been a major turnaround,” Suzlon’s Chief Financial Officer Robin Banerjee said by telephone. Offshore projects and emerging markets are driving demand, he said. Suzlon won 580 megawatts of contracts during the period, bringing its order book to 4,739 megawatts, valued at about 293 billion rupees, the statement said. Suzlon may end the financial year with as much as 260 billion rupees in sales, the highest since 2009, Banerjee said. Paring Debt The company controlled by billionaire Tulsi Tanti needs to boost orders and raise cash ahead of next year, when $389 million in convertible bonds mature and repayments start on 100 billion rupees of loans. If bondholders decide to redeem next year, Suzlon estimates it would have to pay a premium of 6.4 billion rupees, which it hasn’t provided for in its books, the statement said. “If we do have to pay off the convertible bonds, we have enough share premium to do so,” Banerjee said. The 115 million pounds ($187 million) that Suzlon expects to get from selling its remaining stake in Hansen Transmissions International NV (HSN), a Belgium-based maker of gearboxes, will be used to reduce debt and buy out minority shareholders in its German unit Repower Systems SE, Banerjee said. Repower’s shareholders will vote on Sept. 21 on Suzlon’s proposal to pay 63 million euros for the 5 percent stake it doesn’t yet own. If approved, completing the buyout may take another three months after that, Banerjee said. Suzlon has fallen 4.2 percent this year, compared with an 11.3 percent drop in the benchmark Sensitive Index of the Bombay Stock Exchange. The stock rose 3.8 percent to 54.4 at 9:15 a.m. To contact the reporter on this story: Natalie Obiko Pearson in London at npearson7@bloomberg.net To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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