Renault has entered into a credit facility agreement with the French state, for a maximum amount of 5 billion euros ($5.6 billion). The carmaker will be able to draw on this line of credit either in whole or in part, for the purpose of financing its liquidity requirements.
There’s also an initial 12-month maturity, with an option for Renault to extend the maturity for an additional three-year period. Otherwise, the credit facility can be drawn until December 31st, 2020.
Other terms and conditions include a guarantee from the French state for up to 90% of the total amount borrowed, while the banking pool is made up of the following five banks: BNP Paribas, Credit Agricole, HSBC France, Natixis and Societe Generale.
Read Also: Renault’s Restructuring Plan Calls For 15,000 Layoffs Worldwide, 17.5% Lower Production Capacity
Renault boss Jean-Dominique Senard said that the government did not attach any major conditions to this deal – France owns a 15 percent stake in Renault.
The carmaker recently unveiled plans to cut roughly 15,000 jobs globally, including 4,600 in France where the company will look to obtain voluntary departures, while implementing retirement schemes. The announcement led to protests at some of its factories, including at Maubeuge in northern France, reports Autonews Europe.
Since then, Senard went on French radio to say that Renault wants to present a new strategic plan by the end of this year, which will include its vision for its brands.
In the meantime, former VW Group exec Luca de Meo is set to take over as Renault CEO on July 1st.
