Renold extends £35m funding line

RENOLD, the international precision engineering group specialising in industrial chains, has extended a £35 funding facility.

The new package is with a consortium led by Royal Bank of Scotland corporate and institutional banking (RBS CIB) through to June 2013.

The funding package, which is also supported by Fortis, will be used by the Manchester-based group to fund working capital as well as the firm’s successful international expansion strategy, and will act as a springboard to a larger-scale refinancing when market conditions are calmer.

Renold which has a history dating back to 1879, employs 2,700 people worldwide in 23 countries.

Renold has continued to invest overseas, buying the Hangzhou Shanshui Chain Company to establish a manufacturing base in China, for example.
It also has a controlling interest in the L.G.Balakrishnan chain manufacturing company in India, furthering the group’s commitment to invest in manufacturing capabilities in low cost countries.

The Royal Bank of Scotland has had a banking relationship with Renold for almost five years. Its team was led by Duncan Mayall and John Corker.

Renold finance Brian Tenner, said: “We are very happy to have extended the group’s financing facility with RBS CIB until June 2013, and this will help our overall financing strategy.

“The bank has provided valuable support to the business during our successful recovery from the recession, and I look forward to working with RBS in the future.”

John Corker, relationship director, RBS corporate and institutional banking, said: “RBS is delighted to continue its relationship with Renold, a global firm that the UK can be rightly proud of. We look forward to continuing to work with them as their financing strategy develops.”