Spain

Spain

Siemens Gamesa secures €2.5 billion credit facility

SPAIN: Siemens Gamesa Renewable Energy (SGRE) has signed a €2.5 billion multi-currency term and revolving credit facility for "general corporate purposes" and to refinance existing debt.

Siemens Gamesa plans to cut costs by €2 billion over the next three years
Siemens Gamesa plans to cut costs by €2 billion over the next three years

The facility replaces a €750 million credit facility signed in 2017, the manufacturer stated.

It comprises a €2 billion revolving facility that matures in 2023 with two one-year extension options, and a €500 million term facility that matures in 2021.

SGRE signed the facility with a syndication of international financial entities having attracted nearly €3.8 billion in subscription offers, it added.

At its capital market day in February, the company unveiled plans to cut costs by €2 billion over the next three years, following a tough first 12 months since the merger.

Chief executive Markus Tacke said SGRE was on course to cut €400 million by 2020, while the remaining €1.6 billion in savings would be made in productivity as the firm relocates manufacturing to lower-cost countries.

In its most recent financial report, SGRE revealed earnings before interest and taxation of €189 million – prior to purchase price allocation, restricting and integration costs – down 40% year-on-year. Meanwhile, its €35 million net profit was up from a loss of the same amount in the previous quarter. 

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