PSA’s Bank Arm Obtains €5.3 Billion in Loans

PSA Peugeot Citroen's finance unit has secured a €4.1 billion five-year term loan and extended a €1.2 billion revolving credit line through January 2016.

Banque PSA Finance had planned a €3.7 billion term loan but increased the amount because of strong demand from 18 banks in eight countries.

The French government made it easier for the lending unit to borrow by agreeing in October to guarantee €7 billion in loans.

The financing shores up the bank's balance sheet to preserve the unit's investment-grade credit rating. That rating enables Banque PSA to provide affordable loans to buyers and dealers of Peugeot and Citroen vehicles.