Velenje, 08 July (STA) - Household appliance maker Gorenje has signed two Schuldschein loan deals with Deutsche Bank worth a total of EUR 100m. These assignable loan agreements are a form of loans commonly taken out in German-speaking countries.
Gorenje said that the move diversifies its funding sources and enables the company to restructure its short-term financial obligations into long-term obligations. The loans are unsecured and will be due in full in three and five years' time.
These are the first loans of this kind taken out by Gorenje, the Velenje-based company said on Friday in a press release posted on the website of the Ljubljana Stock Exchange.
The Schuldschein loan is a debt instrument, bilateral in nature and governed by German laws. It enables the loan taker to avoid the organised market and the Schuldschein debenture bond is not traded within a stock market.
Some four months before Gorenje signed the loan agreements on Tuesday, a Schuldschein loan was also taken out with Deutsche Bank by retailer Mercator.