A new contract for a syndicated credit facility will enable Koenig & Bauer to finance targeted organic growth in packaging, digital and industrial printing.

The company says the contract is a further step in its goal of reinforcing its stability and financial strength.

In addition to a guarantee facility of 200 million Euros, the syndicated finance includes a revolving cash credit facility of 150 million Euros with an option to increase it by 50 million Euros. The facilities have a term of five years plus two one-year renewal options up until December 2024.

The group-wide financing facility also entails local operating credit lines at various subsidiaries.

Chief financial officer Mathias Dähn says the group already has strong liquidity fuelled by its operating cash flow which it wants to expand "step by step".

"We have now made use of the current favourable market conditions to optimise our credit facilities and to realign them on a long-term basis.

"With our good credit rating underpinned by a strong balance sheet and the progress that we have made in growing our top line and profits, we have been able to secure favourable terms and good underlying conditions," he says.

He says the group's own liquidity together with the flexible credit facilities will allow it to finance our targeted organic growth in packaging, digital and industrial printing, while also providing financial scope for strategic investments and acquisitions.

A "renowned group" of syndicate banks provides a mix of international and national banking partners needed for future growth.

Pictured: Koenig & Bauer has investments in new products such as two-piece cans and corrugated printing in mind