Fundamental agreement reached
Siemens Energy will probably get the guarantees
November 9, 2023, 5:58 p.m
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The Siemens Energy group is doing too well – at least as far as the order situation is concerned. Financial guarantees are needed to process the orders totaling more than 100 billion euros. The banks were reluctant to do so – now the federal government and Siemens are apparently filling the gap.
There is apparently a fundamental agreement in the discussions about state guarantees for Siemens Energy for large orders. The major shareholder Siemens will participate in securing orders, according to negotiating circles. Details are still being discussed. Shares in Siemens Energy rose significantly – at their peak by more than seven percent. The Siemens papers also traded more firmly.
Siemens Energy had asked the federal government for guarantees for future projects due to booming orders in the energy sector. The background is that banks no longer want to handle this alone due to the energy technology group’s deteriorated credit rating and concerns about a cluster risk in view of a full order book of more than 100 billion euros.
The day before, Chancellor Olaf Scholz had already expressed his optimism that a solution would soon be found. In addition to the federal government, a banking consortium and major shareholder Siemens were intensively involved in the talks, he said. When asked, a Siemens representative only officially said: “We are in very constructive discussions about the best possible overall solution in the interests of everyone involved.” The Federal Ministry of Economics stated: “The discussions are still ongoing.”
According to insiders, it will involve hedging with a volume of 15 billion euros. The state should guarantee 8 billion euros of this, the rest should come from banks and the former parent company Siemens, which still holds 25.1 percent of the shares in Siemens Energy. Scholz had emphasized that Siemens Energy had very good growth prospects, so the problem was due to the particularly good order situation.