Renault finalises €5bn French-backed loan

Credit facility carries guarantee from the French state of up to 90% of the total amount borrowed

Renault  announced last week plans to cut 15,000 jobs worldwide, including 4,600 in France. Photograph: Christophe Ena/AP

Renault announced last week plans to cut 15,000 jobs worldwide, including 4,600 in France. Photograph: Christophe Ena/AP

 

Renault finalised on Wednesday a €5 billion loan from the French government, strengthening the car-maker’s finances in the wake of the coronavirus pandemic which has ravaged the auto industry.

Renault said the credit facility carried a guarantee from the French state – which owns a 15 per cent stake in Renault – of up to 90 per 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 car-maker announced last week plans to cut 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. – Reuters