German wind turbine manufacturer Siemens Energy has received project-related guarantees totalling EUR 15 billion.

This has been confirmed by the German Ministry of Economic Affairs and Climate Protection and the German Ministry of Finance according to Bloomberg News, after the German newspaper Handelsblatt had previously published that an agreement was in the works.

The guarantees were not expected until Siemens Energy’s annual report on Wednesday.

Several banks will provide a total of EUR 12 billion in guarantees, and the German state will also provide counter-guarantees totalling EUR 7.5 billion.

The main shareholder Siemens, which owns more than 25 per cent of the shares, is indirectly involved through the purchase of 18 per cent of a joint venture in India. Siemens Energy will realise more than 2 billion euros from this, Bloomberg writes.

It has long been rumoured that the German state would be involved in providing loan guarantees to Siemens Energy, but the counterclaim has been that the main shareholder Siemens would also have to pull its share of the load.

Siemens Energy recently had to recognise that there have been quality problems with the turbines and that the economy is tightening to such an extent that the company needed additional padding.

On Tuesday afternoon, Siemens Energy shares rose 3 per cent to 10.26 euros on the Frankfurt Stock Exchange. On Monday, rumours of the guarantees sent the stock up 6%.