Wind turbine maker Vestas has opened a new five-year revolving credit facility (RCF) worth €850mn.
The finance has been provided by Nordea, DNB, HSBC and SEB and replaces a €650mn facility which is due to expire in January 2015.
A spokesperson for the company tells GTR that “the new RCF and improved funding structure provides a stable, long-term financing platform that adequately supports Vestas’ objective of profitable growth. The facility has been raised on attractive terms that reflect the improved credit profile of Vestas. The facility can be used for cash drawings and issuing guarantees. It is in place to facilitate fluctuations in our working capital and can also be utilised for project related guarantees. These are becoming more important in the business environment in which Vestas operates”.
The company is on more stable financial footing having weathered the storm that swept through the wind industry, brought on by falling subsidies and increased competition from emerging markets.
Vestas reported a €218mn profit for last quarter, for the first time since 2012. A year earlier, it had lost €618mn. The company has since outsourced a lot of its production, slashing a third of its workforce in the process.