IVG has reduced €200m of debt by transferring its portfolio of seven caverns to the IVG Cavern Fund.
The company is planning to further reduce its debt of €3.9bn to some €3bn until 2014.
Since the fund was launched in 2008, the firm has completed and transferred 18 caverns. The fund has generated a total of €500m which have been used to repay the SynLoan II loan.
IVG is planning to complete 12 additional caverns, which will also be integrated into the fund’s portfolio. This transaction will enable the company to reduce the SynLoan II liabilities by a further €300m to around €540 by the end of 2014.
The planed transactions will bring IVG Cavern fund’s investment volume up to €1.7bn. The fund is owned by 14 German institutional investors is managed by IVG Institutional Funds in its capacity as fund manager.
Chief executive Dr Hans Volkert Volckens (pictured) added: “The repayments to date will substantially reduce the company’s interest expenses.
“We are therefore continuing to assume that we can end the financial year 2012 with an almost break-even result and comfortably move back into the black in 2013.”
