ABB has signed a $ 1.5 billion credit facility agreement with a group of 20 banks, covering the company’s liquidity needs for 2003 and 2004.
The facility is secured by a package of ABB assets, including the oil, gas and petrochemicals division, which is earmarked for divestment in 2003.
‘The agreement provides sufficient liquidity for 2003 and 2004, and allows us to implement our program to lower our cost base, focus on our core businesses, and achieve the best value from our divestments,’ said Peter Voser, chief financial officer.
The agreement is a one-year revolving credit facility for $1.5 billion with a further one-year term-out feature. The term-out gives ABB the option to retain up to $750 million in borrowings under the facility, repayable in 2004.
The new credit facility replaces an existing facility, which expired on December 17, 2002.