European Investment Bank Loan to Finance Trelleborg R&D Projects
Trelleborg has reported signing an agreement with the European Investment Bank for an 80 million euro long term-loan. This loan, the Swedish company explains, is intended to finance a part of Trelleborg’s expenditures for selected research and development projects in number of European countries extending out into 2012. These research and development projects focus on the further development of advanced polymer technology and related products to seal, damp and protect in demanding environments.
The loan will be made directly to the Trelleborg Group´s treasury company, Trelleborg Treasury AB. At the option of Trelleborg Treasury, the loan is available for drawdown in several tranches under a drawdown period of 18 months from the signing date of the loan. As selected by Trelleborg Treasury, each tranche may have a tenor of up to seven years from its disbursement date. Trelleborg describes the loan as being “competitively priced”.
This agreement with the European Investment Bank forms part of Trelleborg´s overall strategy to diversify funding sources and potentially facilitates the terming out of a portion of the Trelleborg Group´s total gross debt to scheduled maturities in the later part of the current decade.
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