Tagged porsche and KfW

Porsche seeks fresh government loan

By James Wilson

(Frankfurt) Porsche yesterday said it would ask for a €1.75bn ($2.48bn) loan from the German government’s economic stimulus programme to secure the final amount of refinancing it needs.

The application to KfW, the German state-owned development bank, is the second to be made by Porsche as the sports car maker seeks to secure €12.5bn of credit lines after its expensive attempt to take over Volkswagen. Porsche abandoned the VW takeover attempt, agreeing instead to explore options to merge or integrate the two companies.

A loan to Porsche would come from a €40bn fund that KfW is using to provide corporate financing as part of Berlin’s stimulus programme. It is designed to provide access for financially sound companies to credit if other banks withdraw funding.

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