Stuttgart, Germany: Porsche SE said Wednesday it has secured a €10 billion loan from several banks to help it pay for the shares of Volkswagen AG, to solidify its majority stake in Europe’s biggest automaker by sales.
In a statement, Stuttgart-based Porsche Automobil Holding SE said that under the framework of the agreement, it can extend the volume of the amount to €12.5 billion ($16.8 billion).
“In the wake of the extremely difficult global economic environment and the turbulence in the bond market, banks needed additional assessment, thus resulting in a need for extra time,” Porsche said.
The credit line is being guaranteed by a consortium of 15 banks including Barclays Capital, Deutsche Bank AG, BNP Paribas, Santander, UBS and Credit Suisse Group.
Porsche has been acquiring Volkswagen shares since 2005 and, as of January, owned nearly 51% of Wolfsburg-based VW’s shares. Porsche has reiterated several times it hopes to reach 75% sometime this year.
Porsche Automobile Holding shares were down 0.5% at €38.20 in Frankfurt trading while Volkswagen shares were up 2.3% at €217.