Renault finalizes 5 billion euro state-backed loan

Renault Talisman

Renault finalized a 5 billion euro ($5.60 billion) loan on Wednesday from with the French government, boosting the automaker’s finances following the coronavirus crisis which has damaged the auto industry.

Renault said that the credit facility carried a guarantee from the French state – which holds a 15% stake in Renault – of up to 90% of the overall amount borrowed.

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

Renault also stated that the loan would help finance the firm’s liquidity requirements.

The automaker announced last week plans to slash about 15,000 jobs globally, including 4,600 in France, where the company will look for voluntary departures and use retirement schemes.

The announcement caused weekend protests at some factories, including at Maubeuge in northern France, although Renault’s chairman Jean-Dominique Senard has clarified that the there are no plans to close the site in Maubeuge.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.