Oerlikon to finance its R&D projects by a loan from EIB

Oerlikon to finance its R&D projects by a loan from EIB

Oerlikon and the EIB European Investment bank agreed to a loan totalling around CHF 150 million to provide low cost financing to the company’s R&D projects

The facility will extend over four to five years and is providing a very attractive interest rate. Oerlikon considers this as a further step to diversify the sources of financing and by allowing additional flexibility to execute its growth strategy, declared Jürg Fedier, Oerlikon’s CFO. Wilhelm Molterer, Vice President of EIB and overseeing financing in Germany – where a major volume of the research work will be conducted – stated: “R&D as well as innovation are critical elements in Europe’s competitive position. The EIB focuses on this area particularly as part of its financing activities. Oerlikon’s R&D projects meet EIB’s demanding financing criteria, and we are happy that we can provide an appealing financing concept to this technology company”. The EIB is providing around EUR 16 billion in financial support annually.

As we are well aware, Oerlikon invests about 4 – 5 % of its sales into R&D to sustainably bolster its technology leadership. Fedier underlines: “Unique technology enables the company to stand out in a competitive marketplace is the company’s most important success factor”.

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 Oerlikon’s R&D projects, it was determined that these qualified for the EIB’s support. With the 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 each tranche is used. Currently Oerlikon has a net liquidity of around CHF 963 million and an equity ratio of 49 %, and the agreement with EIB further strengthens Oerlikon’s financial position.



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