SMA Solar secures EUR-100m loan for service unit expansion
Source: SMA Solar Technology
German solar inverter maker SMA Solar Technology AG (ETR:S92) said on Monday it has signed an agreement for a EUR-100-million (USD 115m) loan that will help the company expand its service business.
The long-term credit agreement was reached with Commerzbank, Deutsche Bank and Hessische Landesbank.
“Due to insolvencies and financially stricken project developers with a portfolio of service and maintenance contracts, SMA currently has some interesting business opportunities, particularly in the US and Europe, which is why we are planning to use a portion of our cash reserve to expand our service business,” said CEO Pierre-Pascal Urbon. He added that the company is benefiting from the currently low interest rate level.
At the end of March, SMA Solar’s equity ratio amounted to 50% and its net cash position surpassed EUR 320 million. This makes it one of the most financially sound solar firms worldwide, it noted.