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

  • Caterpillar reports strong performance for first quarter
    April 28, 2017
    Caterpillar is reporting a strong financial performance for its first quarter results for 2017. The company has revealed higher year-over-year sales and revenues for first time in 10 quarters. The first-quarter sales and revenues were up from 2016, while the firm saw an outstanding operational performance in this period. The full-year sales and revenues outlook meanwhile has been raised to a range of US$38 billion to $41 billion.
    Read More
  • Webuild sees double-digit growth in H1
    July 28, 2025
    Construction group's growth 'greater than expected' with revenues up 22%
    Read More
  • Spanish highway project to get EIB A-rated bond issue?
    April 20, 2012
    The European Investment Bank (EIB) is reported to be in talks with the sponsors of the A-66 Benavente-Zamora highway public private partnership (PPP) in Spain over a possible bond financing deal, which would see the Bank provide subordinated debt for an A-rated bond issue. The possible bond issue would be a further greenfield project to launch the European Union’s Project Bond 2020 initiative, with its initial pilot stage being managed by the EIB.
    Read More
  • Deutz bullish with strong results
    March 14, 2018
    German engine maker Deutz reports a strong financial performance for 2017, with a marked increase in new orders, revenue and operating profits. With a view to the future, the firm is also positioning itself as a leader for innovative drive systems for off-highway applications. The firm’s new orders amounted to €1,556.5 million, up by 23.4% on the prior-year figure of €1,261.4 million. All of the major application segments, including the service business, registered an increase in new orders. Almost 162,000
    Read More

Highlighted Content