Ekinops secures a $111M credit line to support growth plans
Ekinops has signed a new €100 million ($111 million) credit line with its banking partners to support its development and external growth strategy.
Secured by the banking pool comprising Caisse Régionale de Crédit Agricole Mutuel des Cotes d'Armor (Agent, Arranger, Credit Coordinator), Banque Populaire Grand Ouest (Arranger and ESG Coordinator), BNP Paribas and KBC Bank, the new financing consists of three elements:
· €50 million ($56 million) loan facility (can be increased to €90 million ($99.7 million) intended for external growth
· €10 million ($11.1 million) revolving credit facility
· Introduction of ESG criteria in new financing packages
Ekinops says these credit lines diversify its funding sources, extend its debt maturity, and reinforce its balance sheet in a highly competitive market environment. As part of its corporate social responsibility (CSR) approach, Ekinops, in agreement with its banking partners, decided to index this new financing facility to its ESG (Environmental, Social and Governance) performance. Ekinops will thus benefit from a bonus of up to 5 basis points applicable to the new financing lines, depending on the number of ESG criteria achieved.
"This new line of financing confirms Ekinops' determination to achieve one or more acquisitions using non-dilutive financing methods,” said Dmitri Pigoulevski, Chief Financial Officer for Ekinops. “It will provide the Group with the necessary resources to seize growth opportunities effectively. We would like to thank our banking partners for their support and trust in our strategy."
This new funding comes when it is seeing growth in critical sectors like optical transport. Ekinops reported second-quarter consolidated revenue of 39.2m€ ($44 million), up +10% Y-o-Y. The company said this year’s quarterly growth at constant exchange rates was 11%. The company saw Optical Transport activity continue its strong growth trajectory, achieving a further jump of 41% in H1 2023 compared to the same period last year, thanks to the success of WDM solutions and the appeal of OTN technology in the US and Europe.
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About the Author
Sean BuckleySean Buckley
Sean is the Editor-in-Chief of Lightwave. He establishes and executes Lightwave's editorial strategy across its website, email newsletters, events, and other information products. Before coming to Lightwave in July 2023, he served as editor of Broadband Communities. Earlier, he served as senior editor of FierceTelecom and the editor of the former Telecommunications Magazine. He got his start in the optical industry in 1998 when he became the editor of enterprise and optical networks at Information Gatekeepers. He has a BA in English from the University of Massachusetts, Boston, and lives in Dracut, Mass, with his wife, two sons, and his cat, Dove.
