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

  • Deutz delivers on strong corporate results
    July 11, 2018
    German engine maker Deutz reports that its financial results reveal a successful level of trading for the first half of 2018. The firm’s preliminary financial results for the first half of 2018 show that the volume of new orders rose by 36.6% compared with the same period in the previous year. New orders hit €1.097 billion compared with €803 million in the first half of 2017. Following the strong start to the year, new orders were also very high at €522 million in the second quarter of 2018, a 30.5% increas
    Read More
  • Rapid adoption of GPS machine control
    April 5, 2012
    The high sophistication of GPS machine control systems has resulted in a fast pace of technological advancement. The three major players in the machine control sector, Leica Geosystems, Topcon and Trimble have all made major gains in recent years. The sophistication of the latest systems can combine satellite position data from the GPS and GLONASS networks with information from total stations to provide precise, high speed machine operation. Further more the firms have also prepared themselves for the intro
    Read More
  • DEUTZ sees “encouraging” rise in net income for Q3
    November 14, 2016
    German engine manufacturer DEUTZ said it had a “very encouraging increase” in operating profit for the first three quarters of 2016. EBIT – earnings before interest and tax – stood at €19.7 million, significantly higher than the figure for the prior-year period of €10.6 million. DEUTZ said that this was due, in particular, to a decrease in depreciation and amortisation. Consequently, the EBIT margin almost doubled to reach 2.1%. Net income for the first nine months of 2016 was €18.8 million, compa
    Read More
  • Deutz sees first quarter orders drop but profits rise
    January 6, 2017
    Deutz, the German motor manufacturer, reported first quarter 2015 new orders down 22.5%, but profit rose slightly on the same period last year. A Deutz statement said new orders received for the first three months totalled €321 million, down from €414.2 million last year.
    Read More

Highlighted Content