German Government Backs Siemens Energy: The German government has decided to provide guarantees worth nearly 8 billion to support Siemens Energy, facilitating the fulfillment of the company’s orders. As part of the deal, the German Federal Ministry for Economic Affairs and Climate Action, the Federal Chancellery, and the Federal Ministry of Finance will grant Siemens Energy a 7.5 billion guarantee. This guarantee is part of a larger arrangement totaling 15 billion, with private banks and other stakeholders participating.
The government’s condition for providing support is that all stakeholders appropriately contribute to safeguarding the company. Private banks are set to grant Siemens Energy a guarantee line of 12 billion, with Siemens Energy securing an additional 3 billion in negotiations with other stakeholders.
Of the 12 billion from banks, the federal government in Berlin will provide a pro rata guarantee of 7.5 billion, representing 50% of the total guarantee requirement. A consortium of banks will acquire a share of 3.5 billion of the guarantee line, and private banks will take over a 1 billion guarantee line without federal government backing, secured by a first-loss tranche by Siemens.
The first-loss tranche serves as a priority in the event of a claim. Additionally, Siemens Energy and Siemens plan to negotiate the sale of shares in a joint venture, providing Siemens Energy with a cash inflow of 2 billion. The agreement includes a customary dividend ban and a bonus ban for the management board during the use of the measure. This arrangement is contingent on successful review processes, approval from relevant bodies, and agreement from Siemens Energy and Siemens.
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Our Reader’s Queries
Does German government support Siemens Energy with $8 BLN guarantees?
Siemens Energy has received a significant boost from the German government, which has pledged guarantees worth $8.1 billion to support the troubled turbine manufacturer. This move is part of a larger deal with other stakeholders aimed at helping Siemens Energy fulfil its order book. The guarantees, worth 7.5 billion euros, will provide much-needed support to the company and help it navigate through challenging times. With this backing from the government, Siemens Energy can continue to focus on delivering high-quality products and services to its customers.
Did Germany grant Siemens Energy Eur7 5 billion loan guarantee?
Siemens Energy has received a significant boost from the German government, with a 7.5 billion-euro ($8.02 billion) loan guarantee. This is part of a larger package of guarantee lines totaling EUR15 billion, aimed at shoring up the company’s balance sheet and ensuring the success of its long-term projects. With this support, Siemens Energy is well-positioned to continue delivering innovative solutions and driving progress in the energy sector.
Has Germany signed a $15 billion rescue package for Siemens Energy?
Siemens Energy, a leading wind farm manufacturer based in Munich, has received a much-needed boost from the German government. The government has agreed to extend financial guarantees worth 15 billion euros ($16.2 billion) to the company, as part of a package aimed at supporting its participation in major renewable energy projects. This move is expected to help the struggling company stay afloat and continue its important work in the field of renewable energy.
What are the financial problems with Siemens Energy?
Siemens Energy, headquartered in Munich, has been facing a tough time trying to outdo Gamesa, leading to one of the biggest industrial setbacks in Germany. The company recently announced that it is expected to incur a net loss of 4.5 billion this year due to various challenges such as malfunctioning turbines and unprofitable contracts.