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

  • Motenegro motorway project underway
    May 4, 2016
    Work is now proceeding as planned on a key motorway project in Montenegro, according to the country’s Ministry of Transport and Sea. The project for the new Bar-Boljare motorway is being carried out by the China Road and Bridges Corporation (CRBC), and the China Communications Construction Company (CCCC).
    Read More
  • Future-proofing construction & quarrying equipment sustainability
    February 16, 2023
    Sustainability is a huge topic across the construction and quarrying industry – not just in terms of what can be achieved tomorrow via carbon-free hydrogen fuel cells and hydrogen internal combustion engines of machine fleets, but today, through the use of smart technology to make jobsites more efficient and sustainable by getting work done right first time, every time
    Read More
  • Statistics important to assessment of transport projects
    April 13, 2012
    IRF Geneva's statistics guru, Cristian Gonzalez, explores the growing importance of data in public and private assessments of transport projects IRF's work on statistics is rarely in the limelight. It is, however, an essential component of the federation's key advocacy role on behalf of its members. Statistics are, indeed, a vital function of authoritative lobbying and knowledge sharing on the range of issues impacting our sector - from highlighting the persuasive economic business cases for investment in
    Read More
  • Cummins first quarter results boosted by accelerating global demand
    May 6, 2021
    Off-road and on-road engine manufacturer Cummins made Q1 revenues of US$6.1bn, a 22% increase on the same quarter in 2020.
    Read More

Highlighted Content