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

  • Hyundai Heavy Industries Europe announces encouraging 2013 sales
    February 13, 2014
    Hyundai Heavy Industries Europe (HHIE) sold 3% more Hyundai construction equipment across Europe in 2013, compared to 2012. In the UK market, it was the heavy line crawler excavators (14tonne – 80.5tonne) that showed the most impressive growth performance – 308 were sold in the UK in 2012 and in 2013 a total of 522 machines were sold, which equates to a 69.48% increase in units sold. This increases the market (comparable products from construction equipment OEM’s) in the UK from 8.34% in 2012 to 12.69% in
    Read More
  • Metso bolsters China presence through manganese steel foundry acquisition
    February 7, 2013
    Metso has increased its presence in China by acquiring a manganese steel foundry (JX) in Quzhou City, around 400km Southwest of Shanghai. "The acquisitions of JX and Shaorui Heavy Industries, and the joint venture with LiuGong Group Corporation announced last November, significantly strengthen our supply capabilities for mining and construction industries in China,” said Andrew Benko, president, mining and construction, Metso. “Metso now has a complete range of capital equipment and wear parts covering a wi
    Read More
  • Q-Free wins contract extension and comments on Kapsch share purchase
    May 2, 2012
    The Swedish Road Administration (Transportstyrelsen) has extended the contract, announced on 27 October, 2010, appointing Q-Free to service and maintain the congestion charging infrastructure in Stockholm which was delivered by Q-Free in 2006.
    Read More
  • Major highway growth in Portugal
    April 12, 2012
    Twenty years ago Portugal was bottom of the European league in terms of roads and safety. A series of ambitious plans has seen the country rise to the top. Patrick Smith reports on how this was achieved In Portugal, out of 3,600km of main national roads (IP+IC), some 1,500km of motorways/high-capacity routes are financed under public-private partnership (PPP) agreements. These are tolled either using shadow tolls (these are being phased out) or real tolls, and plans are in hand to make routes multi free-fl
    Read More

Highlighted Content