Nordex secures EUR 550 million credit facility

GERMANY: Nordex has announced that it has agreed a new EUR 550 million credit deal with its banks.

by Patrick Smith 3 March 2014

Nordex will use the facility to support its "expected further growth"

The credit facility is an extension of an existing arrangement, syndicated with a number of unnamed banks.

Nordex said in a statment: "The term, scope and conditions of this guarantee credit facility have been adjusted to meet the group's current requirements."

The German manufcaturer said that it will use the money as the financial basis for funding its "expected further growth".

This latest funding arrangement has been made possible by the company's strong results last year, when it posted a 33% increase in sales, Nordex said.

In February, competitor Vestas announced that it would issue shares with an approximate value of EUR 450 million, while at the same time setting up an EUR 850 million credit facility.

Vestas senior vice president Morten Albaek said that the money would bolster the comany's balance sheet, but would not be put towards expansion in new markets or mergers and acquisition activity.