Porsche pushing to agree an 8.5 billion euro loan by Novvember 10

There have been reports that Porsche Automobil Holding SE is pushing to get an 8.5 billion euro ($12.62 billion) loan by Nov. 10. This is actually a reduction of a previous figure of 10.5 billion euros using proceeds from the planned sale of 49.9 percent of Porsche SE’s sports car making unit Porsche AG to Volkswagen AG, according to two bankers close to the deal.

Porsche has supposedly given its bankers a deadline to respond by Nov.10 and is aiming to sign the loan agreement by Nov.16, one of the bankers said. For now, Porsche has declined to comment on the matter. Porsche wants an agreement from its banks before a board meeting on Nov. 11, which is a key date for its planned merger with Volkswagen.

The unnamed banker further stated that Volkswagen’s board cannot agree to the purchase without the loan financing, which in turn cannot go ahead unless the purchase is ratified.

Driving the speed of the refinancing is the merger process, specifically the impending expiry of Porsche options over Volkswagen shares, the source added.