PSA: Bank Loan Deal Is Near

A group of banks is poised to finalize an agreement for a loan to PSA Peugeot Citroen's Banque PSA Finance auto finance unit, according to the carmaker.

Bloomberg News reports that Banque PSA is seeking a €4 billion loan to refinance its debt. The news service cites unidentified sources who say deal is likely to be completed early next year.

The French government agreed in October to guarantee €7 billion in loans to Banque PSA, thus making it easier for the unit to obtain such loans.

PSA has said it is anxious to shore up the finance arm's balance sheet to preserve the unit's investment-grade credit rating. That rating enables Banque PSA to provide affordable loans to dealers and buyers of Citroen and Peugeot vehicles.