Deutz secures new syndicated loan to bolster finances

German engine manufacturer Deutz has replaced its existing funding arrangements with a new syndicated loan. The working capital facility totalling €160million is being provided by a syndicate of German banks. The credit line is unsecured and runs until June 2017. In addition, Deutz has received a low-interest loan amounting to €90 million from the European Investment Bank. This loan, which is also unsecured, is repayable over a period of eight years with a grace period of two years. Deutz has hedged the in
July 9, 2012 Read time: 2 mins

German engine manufacturer 201 Deutz has replaced its existing funding arrangements with a new syndicated loan.

The working capital facility totalling €160million is being provided by a syndicate of German banks. The credit line is unsecured and runs until June 2017.

In addition, Deutz has received a low-interest loan amounting to €90 million from the 1054 European Investment Bank. This loan, which is also unsecured, is repayable over a period of eight years with a grace period of two years. Deutz has hedged the interest-rate risk arising from this loan.

"This syndicated loan and the loan from the European Investment Bank have enabled us to secure long-term funding for our projects and further growth. The stronger position in which the Company now finds itself has allowed us to further reduce our interest expenses for the next years and to significantly widen the range of options available to us", said Dr Margarete Haase, Deutz management board member responsible for finance, human resources and investor relations.

In June 2012 the 2394 Volvo Group increased its shares in Deutz from 6.7% to 25%, making the Swedish construction machine manufacturer the single largest shareholder in the company. The deal is subject to regulatory approval.

For more information on companies in this article

Related Content

  • Tackling the UK's traffic congestion
    February 28, 2012
    The biggest problem on UK roads is congestion, and there is no shortage of ideas as to how it should be tackled. Patrick Smith reports. Congestion (and how to relieve it), along with safety, are among the top priorities facing those responsible for looking after the UK's roads. Road pricing, car-share lanes, greener vehicle initiatives and alternative methods of transport such as buses, trams and rail are all part of the approach, but prior to the current economic climate the nation's love affair with the c
    Read More
  • Europe and Americas drive increase in Volvo Construction Equipment sales
    July 21, 2021
    Volvo Construction Equipment increased year-on-year net sales by 13% in Q2, driven by higher volumes in Europe, North America and South America.
    Read More
  • Rolls Royce Power Systems opening remanufacturing facility
    January 25, 2024
    Rolls Royce Power Systems is opening a remanufacturing facility in South Carolina.
    Read More
  • Zoomlion ends pursuit of Terex Corporation
    May 31, 2016
    Zoomlion has ended its multi-billion dollar bid to acquire Terex Corporation. In a statement to customers, Ken Lousberg, Terex Cranes president, said that discussions between the two construction equipment industry heavyweights over a near US$3.3 billion deal had been terminated. Lousberg said the recently announced sale of Terex Corporation’s Material Handling and Port Solutions business segment to Finland-based Konecranes for around $1.3 billion is proceeding as planned, subject to regulatory and Konecra
    Read More

Highlighted Content