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

  • Low temperature asphalt and aggregate options’
    February 7, 2014
    At what point does ‘some technology’ become ‘enough technology’? Less than four years ago industry publications were filled with a persistent message, the reluctance of UK based contractors to adopt machine control to the same extent as near European neighbours, particularly close ones such as Ireland and Holland. However from 2009 onwards we have seen a huge shift in demand for machine control as the success of high profile road and rail jobs such as the M25 widening scheme and Airdrie – Bathgate rail
    Read More
  • Information technology and transport development
    April 12, 2012
    A team of eminent Russian specialists* introduce exciting new information technologies, such as the Internet of Things, and foresee their promising applications in the field of transport infrastructure development. Global economic growth, combined with explosive digital technology proliferation, brings new challenges to the field of transport infrastructure. Technical advances such as Intelligent Transportation Systems (ITS), vehicle to infrastructure interfaces, global positioning, electronic toll collecti
    Read More
  • Information technology and transport development
    February 16, 2012
    A team of eminent Russian specialists* introduce exciting new information technologies, such as the Internet of Things, and foresee their promising applications in the field of transport infrastructure development
    Read More
  • Intermat show looks strong
    February 29, 2012
    Forward bookings for the upcoming Intermat construction equipment exhibition in French capital Paris are extremely bullish.
    Read More

Highlighted Content