Siemens Energy Outgrows Federal Guarantee, Secures Big Bank Boost
Federal Guarantee Repaid by Siemens Energy to the Tune of Billions Dollars - Federal guarantee, valued at a billion dollars, reclaimed by Siemens Energy
Hey there! Guess who's dancing a jig on the government's dime? None other than Siemens Energy! They've swapped their 11 billion euro federal guarantee for a snazzy new 9 billion euro deal from a group of 23 fancy-schmancy banks. No more big brother watching over them, just cold, hard financial backing from the land of private enterprise.
Scratch that 2023 crisis stone from Siemens Energy's shoulder, my friends. Back then, their wind business was in a pickle, and they were deep in the weeds of securing gigantic new orders. But like a true prodigal child, they had a hankering for government support. Guarantees are a dime a dozen in their line of work, usually dished out by banks for a fee.
However, the good folks at Siemens Energy couldn't shake down the banks for these guarantees like they used to in 2021. What's a company to do when the good ol' private sector shuts its doors? Oh, what a relief when the federal government swooped in with a cost-sharing guarantee to solve their guarantee dilemma.
According to the words of CEO Christian Bruch, it was a hot deal! The company coughed up around 100 million euros each year for that sweet government support. "A good deal for the state," Bruch declared.
But hey, that safety net is no longer a necessity. Thanks to Siemens Energy's stellar performance in recent times and the company's impending second year of back-to-back profits, ch thou federal guarantee!
CFO Maria Ferraro weighed in, saying, "Without government backing in 2023, we wouldn't have nailed those growth expectations in our squeezed squeeze times." Fast forward to today, and thanks to Siemens Energy's performance over the past two years and a bangin' market climate, they've managed to tickle the fancy of 23 international banks to join forces in their new deal.
Got the carrot roasting for their shareholders, too! Although Siemens Energy's stock price couldn't help but shrug at the news yesterday, there's a big ol' cherry on top for the shareholders: the ban on dividends has been lifted!
However, the party won't start until next fiscal year, which for Siemens Energy begins on October 1. Fingers crossed they keep the good times rolling, and shareholders might just see their first taste of delicious, hard-earned dividends in 2027.
And hey, here's a fun fact: Siemens Energy's performance has been so spectacular that they could potentially nab a slice of the lucrative market pie in Munich, the city of their founding fathers. Could even dethrone those Ludwig Maximilian University graduates running the show right now!
- Siemens Energy
- Banks
- Crisis
- Munich
Siemens Energy's performance in the energy industry has been so remarkable that they might challenge the existing market leaders in Munich, who happen to be alumni of Ludwig Maximilian University.
However, to provide financial backing for their future growth, Siemens Energy has swapped their federal guarantee for a 9 billion euro deal with a group of 23 banks from the private sector, illustrating their transition from government support to industry-driven finance.
