Renault finalises 5 billion euro state-backed loan

Renault finalises 5 billion euro state-backed loan

Renault finalised on Wednesday a 5 billion euro (US$5.60 billion) loan from with the French government, strengthening the carmaker's finances in the wake of the coronavirus pandemic which has ravaged the auto industry.

Coronavirus disease (COVID-19) outbreak in Sint-Pieters-Leeuw
A Renault car is seen in a show room at a Renault carmaker dealer, amid the coronavirus disease (COVID-19) outbreak in Sint-Pieters-Leeuw, Belgium May 29, 2020. REUTERS/Yves Herman

PARIS: Renault finalised on Wednesday a 5 billion euro (US$5.60 billion) loan from with the French government, strengthening the carmaker's finances in the wake of the coronavirus pandemic which has ravaged the auto industry.

Renault said that the credit facility carried a guarantee from the French state - which owns a 15per cent stake in Renault - of up to 90per cent of the total amount borrowed.

Banks BNP Paribas , Credit Agricole , HSBC France , Natixis and SocGen were involved in the credit deal.

Renault also said in a statement that the loan would help finance the company's liquidity requirements.

The carmaker announced last week plans to cut about 15,000 jobs worldwide, including 4,600 in France, where the company will seek voluntary departures and use retirement schemes.

The announcement sparked weekend protests at some factories, including at Maubeuge in northern France, although Renault's chairman Jean-Dominique Senard has pledged the site will not be closed.

(US$1 = 0.8925 euros)

(Reporting by Sudip Kar-Gupta and Matthieu Protard; Editing by Keith Weir and Louise Heavens)

Source: Reuters

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