SIEGY Siemens AG (PK)

By Giulia Petroni

The German government has decided to grant Siemens Energy a 7.5 billion-euro ($8.02 billion) guarantee as part of guarantee lines totaling EUR15 billion to strengthen the company's balance sheet and secure its long-term projects.

"In the past few weeks, the Federal Government has been in intensive contact with Siemens Energy, Siemens [...] and private banks," the government said Tuesday. "The federal government's prerequisite was that all stakeholders participate appropriately in securing the company."

The agreement--which is subject to review processes and approvals--also foresees guarantees of EUR3.5 billion from a bank consortium and a further EUR1 billion from private banks, as well as EUR3 billion from other stakeholders.

"We are pleased with the German government's clear support for Siemens Energy and the commitment to the rapid implementation of projects to make the energy transition a success," a Siemens Energy spokesperson said. "We will provide further details at our annual press conference on November 15."

The German government also said Siemens Energy and Siemens intend to negotiate the sale of shares in a joint venture that would lead to a cash inflow of around EUR2 billion for Siemens Energy. According to media reports, Siemens Energy is considering selling a stake in Siemens India.

"We will share the details as soon as all required governance approvals are in place and contracts are executed," Siemens said in a statement. "All along, we have been committed to finding the best possible solution for all interested parties," the company said.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

November 14, 2023 11:18 ET (16:18 GMT)

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