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

  • A6 project between Weinsberg and Wiesloch/Rauenberg set to start
    January 26, 2017
    Work will soon start on the €1.3 billion project to widen a stretch of the A6 motorway, one of Germany’s most congested highways. Both sides of the motorway between the Weinsberg and Wiesloch/Rauenberg junctions will be expanded. On 25 km of the section being expanded under the project – altogether 47.1 km – the number of lanes will be increased from four to six. The project also encompasses the construction of the 1.3km-long Neckartal Bridge. Preparatory work for the public-private partnership has
    Read More
  • Transport the key to economic growth
    July 12, 2012
    Delegates from around the world discussed the future of global transport at the 2009 International Transport Forum in Leipzig, Germany In the face of the global economic downturn, transport will play a key role in supporting economic growth and in the creation of new confidence in the world's economic future, the delegates of the 2009 International Transport Forum (ITF) agreed. As almost all global threats have strong, central links and impacts, the transport sector will remain at the forefront of most glob
    Read More
  • Near US$200m loan for Balkan motorway
    April 27, 2012
    The European Bank for Reconstruction and Development (EBRD) has granted a US$198million (€150million) sovereign-guaranteed loan for the construction of part of the new Banja Luka-Doboj motorway in Bosnia and Herzegovina. The loan-targeted motorway section is the main east-west link in Republika Srpska, one of the country’s entities. The EBRD said it will also support the preparation of the first public-private partnership (PPP) project for the main north-south link in Bosnia and Herzegovina, Doboj to Vukosa
    Read More
  • VDMA’s optimistic 2014 outlook
    February 21, 2014
    The VDMA has given an optimistic 2014 performance forecast for the German construction equipment and building material machinery industry. Compared to the previous year, industry turnover declined slightly in 2013 by 6% to €11.7 billion. But incoming orders for construction equipment are said by the VDMA to have risen by 7% in 2013, compared to 2012. The VDMA predicts a 5% turnover rise in 2014, compared to the previous 12 months. “We can look back on a satisfactory business year overall; given all the
    Read More

Highlighted Content