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

  • STRABAG raises 2011 and 2012 outlook
    February 29, 2012
    After a solid first quarter 2011, STRABAG, Central and Eastern Europe’s largest construction company, has raised its outlook for the financial years 2011 and 2012.
    Read More
  • Engine innovations unveiled
    August 24, 2023
    The recent CONEXPO-CON/Agg exhibition in Las Vegas saw major engine firms unveiling innovative new technologies
    Read More
  • ARTBA concern over US construction
    February 23, 2012
    The latest survey from the American Road & Transportation Builders Association's (ARTBA) suggests a worrying trend for US road and bridge construction in 2011.
    Read More
  • Multiple role machine
    February 15, 2012
    The introduction of a new backhoe loader line is a major development for Case, Mike Woof reports. Case is introducing its new backhoe loader line-up for the European market, which offers key performance improvements. There are four models being introduced, the 695ST, 590ST, 580ST and 580T, aimed at different market segments and intended to encompass the entire range of customer requirements. This is an important launch for CNH, which has been offering a fully-integrated backhoe loader in its line-up since 1
    Read More

Highlighted Content