PARIS (Reuters) – French carmaker and Peugeot-owner PSA (PEUP.PA) announced on Monday a further 3 billion euros ($3.3 billion) worth of loans to strengthen its financial position in the wake of the hit to the global automotive industry from the coronavirus crisis.
The latest syndicated loans come on top of an existing 3 billion euros worth of undrawn credit lines, making available a total amount of 6 billion euros.
The new syndicated loan has an initial maturity of 12 months with two optional 3-month extensions, added the company.
“This operation reinforces our ability to face up this exceptional situation and prepare the future. It also proves the confidence of our partner banks in the financial strength and recognized resilience of Groupe PSA,” said PSA Chief Financial Officer Philippe de Rovira.
PSA shares were up 7.3% amid a broader global equity market rally, while Renault (RENA.PA) shares also rose 10.5%.
($1 = 0.9245 euros)
Reporting by Sudip Kar-Gupta; Editing by Kirsten Donovan