Engine manufacturer Deutz this week replaced its existing funding arrangements with a new syndicated loan, the company said. The working capital facility totals €160 million (about U.S. $196.4 million) and is being provided by a syndicate of German banks. The credit line is unsecured and runs until June 2017.
Deutz also has received a low-interest loan amounting to €90 million from the European Investment Bank, repayable over an eight-year period.
“The 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, Deutz board member 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.”
Deutz is based in Cologne, Germany.