UPDATE 1-ABB refinances syndicated credit facility

* ABB renews revolving $2 bln 3-yr credit facility

* New facility replaces existing one expiring 2010

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ZURICH, Oct 8 (Reuters) - Swiss engineering group ABB (ABBN.VX) said on Thursday it had renewed a $2 billion revolving credit facility to replace an existing facility signed in 2005 and due to expire in 2010.

The group, which competes with France's Schneider (SCHN.PA), said the agreement, signed by a syndicate of 29 banks, was initially launched at $1.5 billion, but was increased after what ABB called "a very substantial oversubscription".

"This agreement reflects the ongoing confidence that the banking community has in ABB and ensures that we have maximum financial flexibility during the current uncertain market environment," said ABB Chief Financial Officer Michel Demare.

ABB, which sells power equipment to utilities as well as to oil and gas companies, said the new 3-year facility would be used for general corporate purposes.

The company has benefited from the replacement of ageing power systems in Europe and the United States as well as from heavy investment in power infrastructure in emerging economies such as China and India, fuelled by economic growth there.

ABB shares are up 31 percent in the year-to-date, slightly outpacing a 29 percent rise in the Dow Jones industrial goods and services index .SXNP.

(Reporting by Martin de Sa'Pinto; editing by Simon Jessop)