Volkswagen Group has reportedly agreed the terms for an EUR20bn “bridging loan” with banks to help cover extraordinary costs arising from its diesel emissions scandal.
A Reuters report cited anonymous sources ‘familiar with the matter’ and noted that the company is coming under pressure to strengthen its resources in the wake of the scandal and its associated costs, which some analysts say could top EUR30bn.
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One impact of the scandal has been to damage confidence in the company and wipe billions off its share price. Another has been that it has become more expensive for the company to borrow from its bonds debt market.
The Reuters report said that VW hoped its bonds would have returned to “more normal levels” by next spring, allowing it to issue debt and repay the bridging loan.
A group of thirteen banks have come together for the loan, the report said.
