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

  • Cummins posts record second-quarter revenues
    August 7, 2023
    Cummins has recorded second-quarter revenues of $8.6 billion
    Read More
  • Better maintenance is on the Horizon for UK’s Warrington Council
    May 15, 2018
    Good, readable analysis of road surfaces to ensure sufficient maintenance funding is an essential part of asset management. The technical side of ensuring a good road surface is integral to maintaining safe, superior highway infrastructure. But securing sufficient government funding for such work – repairs and new-build – based on the current road surface is also essential. To evaluate road conditions and structure for such a business case, one UK local council turned to software provider Yotta.
    Read More
  • HD Hyundai Construction Equipment and HD Hyundai Infracore merger
    July 4, 2025
    HD Hyundai Construction Equipment and HD Hyundai Infracore are merging.
    Read More
  • Highway 407 Revisited – smart tollroad extension
    June 7, 2016
    In the late 1990s, World Highways published a supplement on construction of Canada’s Highway 407, the world’s first all-electronic toll road. But how successful has it been? David Arminas reports from Toronto The head office for 407 ETR Concession Company is a low-rise building next to exit 59, just north of Toronto, Canada’s economic powerhouse. The building may be non-descript but inside is the advanced technical heart of Highway 407 ETR – Express Toll Route. It houses the latest toll monitoring techno
    Read More

Highlighted Content