Fiat Chrysler Automobiles (FCA) has entered into a new credit facility with two banks. It says the credit line will be available for ‘general corporate purposes and for working capital needs of the Group and is structured as a bridge facility to support the group’s access to capital markets.

In a statement FCA said the credit facility may be drawn in a single tranche of EUR3.5bn, with an initial 12-month term which can be extended at the company’s option for an additional 6-months’ term on the first anniversary of the signing.

The new credit facility is additional to the company’s existing credit facilities of EUR7.7bn including the bi-lateral credit lines worth EUR1.5bn that the company has started to draw down.

FCA said the ‘transaction confirms the continued strong support of FCA’s international key relationship banks’ in the current extraordinary circumstances.’

A number of automotive OEMs have sought to expand credit availability in the face of the deepening COVID-19 crisis and seized up markets.

FCA signs up for credit facility of EUR3.5bn