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

  • Cummins reports strong Q2 results for 2022
    August 4, 2022
    Cummins is reporting strong results for the second quarter of 2022.
    Read More
  • AEM leaders’ set agenda for boosting manufacturing jobs and lift U.S. economy
    March 1, 2013
    Two senior U.S. construction equipment industry figures have called for action on priority policies to create manufacturing jobs and expand the American economy. Speaking during the Association of Equipment Manufacturers (AEM) ‘state of the industry policy update’ press conference, 2013 AEM chair and Caterpillar Group president Stu Levenick and AEM president Dennis Slater said the Association’s agenda in dealings with Government was focussed on improving transport and transport infrastructure, energy infras
    Read More
  • Volvo Construction Equipment remains upbeat despite 2015 sales dip
    February 5, 2016
    Volvo Construction Equipment saw market share and underlying earnings improve in the final quarter of 2015. The company said that improved underlying earnings and more market share of the important larger machine segments were insufficient to offset a declining total market in Volvo Construction Equipment’s final quarter 2015 results. Sales were down 11% in the period. For full year 2015, sales at the company dipped by 3%. In the fourth quarter of 2015 Volvo CE reported that net sales decreased by
    Read More
  • Corridor 10 project in Serbia may be delayed
    April 2, 2013
    A series of challenges are now facing the project to construct Serbia’s key Corridor 10 highway. The EU has asked the Serbian Government for details of the priority plan and deadlines for the completion of the Corridor 10 highway. At present three sections of Corridor 10 are at risk, due to delays and financing issues. These are the Ciflik-Pirot stretch, the Bancarevo tunnel and the Vladicin Han section. According to Serbian roads company Koridori Srbije, the construction schedule will be set by the end of
    Read More

Highlighted Content