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.

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.  

GlobalData Strategic Intelligence

US Tariffs are shifting - will you react or anticipate?

Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.

By GlobalData

Just Auto Excellence Awards - Have you nominated?

Nominations are now open for the prestigious Just Auto Excellence Awards - one of the industry's most recognised programmes celebrating innovation, leadership, and impact. This is your chance to showcase your achievements, highlight industry advancements, and gain global recognition. Don't miss the opportunity to be honoured among the best - submit your nomination today!

Nominate Now