We recently reported that the gargantuan Volkswagen corporation was spending around €2 billion or AU$3.6 billion per week on fixed costs across its shuttered European factories. Earlier last week, Daimler AG was forced to secure a loan facility to the tune of €12 billion (AU$21.2 billion).
The deadly coronavirus pandemic is proving to be fatal not to just people but also multi-billion dollar corporations, such as Daimler AG. The parent company to Mercedes-Benz, amongst others, took out the €12 billion loan facility in addition to the €11 billion (AU$19.4 billion) revolving credit facility with a term of until 2025, with the option to extend it further.
The additional loan facility can be utilised within a 12-month period with two extension options of six months, thus boosting its liquidity buffer in a time which sees its factories shut and its sale numbers plummeting.
The additional €12 billion loan facility was approved on the 1st of April by four lending giants namely: BNP, Banco Santander, Deutsche Bank and JPMorgan. Syndication has started.
Moreover, it isn’t just Daimler who’s had to take out loans to keep their liquidity. Groupe PSA secured a syndicated loan amounting to €3 billion. This is in addition to the existing €3 billion (AU$5.3 billion) undrawn confirmed line of credit, totalling €6 billion (AU$10.6 billion).
“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 Philippe de Rovira, Chief Financial Officer of Groupe PSA.
For more information and for the best deal on your next brand-new car, please visit our Showroom today.