German power equipment manufacturer Nordex has raised €1.4bn in financing to fund its €785m acquisition of Spanish Acciona Windpower (AWP) and further growth.
A new credit line worth €950m has been agreed for a five-year long-term with 14 national and international banking partners.
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An agreement for a €450m cash facility has also been reached, with a duration of up to 18 months.
The credit facility has been structured to be widened following the AWP merger to include banks covering AWP’s markets, especially the growth markets including South Africa, Mexico and India.
The facility is also supported with an option to be increased to up to €1.2bn.
The cash facility, on the other hand, will be covering the cash component of the AWP transaction and is also expected to be partly used for repayment of a corporate bond maturing in April 2016.
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By GlobalDataNordex chief financial officer Bernard Schäferbarthold said: "In selecting the syndicate banks, some of which are new, we paid attention to good ratings and the ability to support the Group in its new regional orientation in emerging markets."
Nordex had announced about the AWP acquisition in October, which is expected to create a new wind power major.
The deal is expected to include €366.4m in cash consideration, along with 16.1 million of new Nordex shares valued at €26 each.
