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

  • Asphalt plants looking at greener production systems
    April 10, 2012
    A wide variety of new equipment and technology to assist production at asphalt plants is about to be launched onto the market, while asphalt producers are continuing to look at greener working practices. Guy Woodford reports. Lintec, in partnership with Loesche, recently created what they say is the world’s first containerised Coal Mill Plant for independent coal dust supply at the jobsite which offers mobility and high economic efficiency through the substitution of gas or oil with coal.
    Read More
  • EU road safety – slight gains
    September 21, 2018
    A slow improvement is being seen on Europe’s roads in terms of safety. In 2017, 25,250 people were killed in road crashes in the EU. This represents a 2% reduction from the road death rate for the EU in 2016. However there is concern that progress with road safety is too slow as the road death rate for the EU has fallen by only 3% in the last four years. Of the 32 countries monitored by the PIN Programme, 22 reduced road deaths in 2017 . The best results were achieved by Estonia with a 32% decrease
    Read More
  • Sri Lankan highway upgrade
    February 29, 2012
    A key route in Sri Lanka is to see a major upgrade programme following provision of a US$100 million loan by the World Bank (WB).
    Read More
  • VolvoGroup makes strategic investment in DriveCam
    February 14, 2013
    Volvo Group Venture Capital, a Volvo Group subsidiary, has made a strategic investment in global driver risk management firm DriveCam – making Volvo Group a minority shareholder in the company. “Volvo Group and DriveCam have a common vision - to reduce traffic accidents worldwide,” said Johan Carlsson, president of Volvo Group Venture Capital. “Complementary to our leading position in the global truck manufacturing market, Volvo Group is also focused on the human element in reducing accidents, an area where
    Read More

Highlighted Content