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Voestalpine Broadens Measures to Safeguard Liquidity

Published: November 24, 2011; 18:32 · (Vindobona)

The Austrian steel company has agreed on a syndicated loan of € 800m in two tranches in order to safeguard medium and long-term financing.

Voestalpine Broadens Measures to Safeguard Liquidity / Picture: © Voestalpine AG

The voestalpine Group is responding quickly to the changing market situation. In total the company will be supplied with two tranches of € 400m, each with a maturity of five years, issued by a consortium of eleven banks.

The first tranch will safeguard liquidity needs for investments and repayments during the business year 2012/13. The second tranch is intended to cushion potential market disturbances in the field of financing and is a purely precautionary measure. Although the transaction was significantly oversubscribed, in the end it was not increased.

“Taking measures to safeguard liquidity represents a further diversification of our recent corporate action”, explained Chief Financial Officer Robert Ottel. voestalpine was very successful in placing a corporate bond with a volume of € 500m on the capital market in January 2011. Foreign banks make up two thirds of the consortium, the remaining third of the banking partners comes from Austria, and is being coordinated by the UniCredit Bank Austria AG and the Credit Agricole Corporate & Investment Bank.

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