"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.
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