Vestas (OMX: VWS) has been boosted by a $1.2bn loan agreement with its banks. The wind turbine manufacturer has seen its shares climb sharply on securing the funding.
The Danish company has been challenged in recent years with overcapacity, a faltering global economy and a reduction in subsidies for renewable energy by cash-strapped governments.
Vestas reported its lowest third quarter order inflow in five years and has had to shed jobs globally and pull out of unprofitable projects to adapt to tougher market conditions.
The company, who had been battling to restore investor confidence after profit warnings in October 2011 and January 2012, said the deal with its nine international banks showed their support for its business model and confidence it could cut debt in future.
“The agreement brings calm for us, for the banks, for shareholders and also for the big clients. That is what is important for us,” said chief financial officer Dag Andresen.
The nine Nordic and international banks that were its existing lenders all participated in the new syndicate.
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