New credit initiative from Bank Austria:
AufschwungKredit to help medium-sized and large enterprises stay the course
- Designed for companies with annual sales revenue of EUR 3-250 million whose ratings have temporarily dipped because of the crisis
- Requirements: sound structure, sustainably competitive, up-to-date business figures and a realistic business plan
- Can be used for investments and for working capital financing
The global financial crisis and the sharp decline in economic activity it triggered have resulted in massive declines in ratings of otherwise sound companies. Sometimes this can cast doubt on the chances of winning new, lucrative contracts since it seems impossible to pre-finance such client orders, additional staff or the necessary investments. This is why, as part of its economic stimulus package launched in November 2008 for middle-market companies, Bank Austria is now offering the "AufschwungKredit". This financing solution is designed for businesses that generate annual sales revenue of EUR 3-250 million, whose long-term competitiveness is not at risk and which have a realistic business plan. The company must also be willing to agree to a stringent review of its liquidity and debt capacity.
Helmut Bernkopf, Board member at Bank Austria for Corporate & Investment Banking: "Our economists assume that the economic crisis is largely behind us and from now on the situation will steadily improve. Yet just like a marathon, much can happen over the last few miles. With the AufschwungKredit we want to make it easier for companies to stay the course."
We have earmarked a total of EUR 1 billion for the AufschwungKredit. Potential borrowers are companies which had investment-grade ratings before the crisis and now sit between BB and B+. In the form of an investment loan the AufschwungKredit can total between EUR 5 and 20 million for any one company. It can be disbursed without interest payments for the first two years, or even in the form of a bullet loan. When used for working capital financing the AufschwungKredit can total up to EUR 10 million. Its term ranges for 3 to 5 years and it bears a variable interest rate.
During a free consultation, the current liquidity and financing situation of the company is analysed with tools such as the WorkingCapitalCheck or the Debt Capacity Calculator. Taking the various federal and provincial funding agencies into consideration our subsidy specialists facilitate access to subsidies, public-sector guarantees and low-cost financing. The prospective borrower must prove it adopted a proactive stance to the economic crisis, and state how and when it intends to regain its investment-grade rating.
Enquiries: Bank Austria Press Office Austria
Tiemon Kiesenhofer, Tel. +43 (0) 50505 - 52819;