Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Siemens Raises $3 Billion Credit Facility at Lower Interest Rate

Oct. 2 (Bloomberg) -- Siemens AG raised a $3 billion credit line to refinance the debt of Europe’s biggest engineering company at a lower rate of interest.

The five-year revolving credit facility pays interest at 20 basis points more than the London interbank offered rate, according to a company statement. That’s 10 basis points, or 0.1 percentage point, less than it pays on a 4 billion-euro ($5.4 billion) revolver due 2018 obtained last year, according to data compiled by Bloomberg.

Siemens is the latest German borrower to capitalize on competition among banks to cut borrowing costs. Daimler AG obtained a 9 billion-euro revolving credit facility last week and Deutsche Post AG, Europe’s largest postal service, refinanced a 2 billion-euro credit line, both at rates lower than existing deals.

The nation’s investment-grade borrowers raised more than $40 billion of loans this year, compared with $17 billion in the same period in 2012, data compiled by Bloomberg show.

Commerzbank AG, Deutsche Bank AG and JPMorgan Chase & Co. coordinated the facility for Munich-based Siemens, which replaces part of a $4 billion loan facility that expired in August, according to the statement. The new facility has two one-year extension options.

Siemens, which is rated Aa3 by Moody’s Investors Service and A+ by Standard & Poor’s, said banks offered more than $5.7 billion when the deal was syndicated.

Barclays Plc, BNP Paribas SA, Citigroup Inc., Credit Agricole SA, ING Groep NV, Societe Generale SA, Royal Bank of Scotland Group Plc and UniCredit SpA also participated in the facility as bookrunners, earning an additional 7 basis-point commitment fee, according to the statement.

The revolving credit facility, a type of debt where money repaid can be borrowed again, includes a fee if it’s drawn, which rises to 30 basis points if two-thirds of the credit line is utilized, data compiled by Bloomberg show.

To contact the reporter on this story: Stephen Morris in London at smorris39@bloomberg.net

To contact the editor responsible for this story: Faris Khan at fkhan33@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.