06.07.2012

Deutz secures long-term funding

German engine manufacturer Deutz has today replaced its existing funding arrangements with a new syndicated loan. The working capital facility totalling €160 million is being provided by a syndicate of German banks. This credit line is unsecured and runs until June 2017. In addition, Deutz has also received an unsecured, €90 million low-interest loan from the European Investment Bank repayable over 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,” said Dr Margarete Haase, a member of the Deutz board of management responsible for finance, human resources and investor relations. “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.”