Home / Knowledge / News / Textiles / European Investment Bank to finance Oerlikon R&D activity
European Investment Bank to finance Oerlikon R&D activity
18
Dec '13
Oerlikon and the European Investment Bank (EIB) have agreed a loan totaling approximately CHF 150 million to provide low-cost financing to the company's research and development projects (R&D projects). The facility has a term of four to five years providing a very attractive interest rate.

"The agreement with the EIB is a further step in our approach to diversify our sources of financing and also gives us additional flexibility to execute on our growth strategy", says Jürg Fedier, the company's CFO.

"Research, development and innovation are critical elements in Europe's competitive position", says Wilhelm Molterer, the Vice President of the EIB who oversees financing in Germany, where a major portion of the research work will be conducted. "The EIB focuses on this area in particular as part of its financing activities. Oerlikon's R&D projects meet our demanding financing criteria, and we are happy that we can provide an appealing financing concept to this technology company."

The mission of the EIB, the lending institution of the European Union, is to promote research and development projects in the EU. In carrying out this mission, the EIB provides about EUR 16 billion in financial support every year. Oerlikon invests about 4 % to 5 % of its sales into research and development to sustainably bolster its technological leadership. "Unique technology that enables us to stand out in a competitive marketplace is our most important success factor", Fedier says.

Last year, the EIB approached Oerlikon and offered the company a way to finance its high R&D expenditures at an attractive interest rate. Following a careful review of the R&D projects, it was determined that they qualified for the EIB's support. Now, EIB and Oerlikon have entered into a CHF 150 million loan agreement.

Oerlikon has a period of 24 months to draw on the credit facility otherwise the facility will expire. The repayment terms will be jointly defined by both partners at the time that each tranche is used. "With current net liquidity of about CHF 963 million and an equity ratio of 49 %, the agreement with the EIB further strengthens our financial position", says Oerlikon's CFO, Jürg Fedier.

Oerlikon

Must ReadView All

Textiles | On 25th Mar 2017

GST to positively impact retail value chain: CBRE

The implementation of the Goods and Services Tax (GST) bill in India...

Textiles | On 25th Mar 2017

MEGlobal to build first ever US MEG plant

Monoethylene glycol (MEG) producer MEGlobal plans to construct a new...

Courtesy: Ulster Carpet

Textiles | On 25th Mar 2017

Ulster Carpets acquires Griffith Textile Machines

Northern Ireland based manufacturer of carpets, Ulster Carpets said...

Interviews View All

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Prabu Mohanram
Balavigna Weaving Mills Pvt Ltd

The biggest challenge that the weaving industry faces is high price

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
March 2017

March 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search