Italy close to announcing Fiat Chrysler's $7 billion loan - sources
MILAN (Reuters) - Italy is close to announcing € 6.3 billion ($ 7 billion) in financing guarantees for Fiat Chrysler (FCA) car makers.
The Italian division of the FCA has used Rome's COVID-19 emergency funding program to secure a government-sponsored three-year facility to support the Group's operations in the country and in the Italian automotive sector, which employs approximately 10,000 companies.
The loan would be paid out by the largest Italian retail bank, Intesa Sanpaolo, which has already approved it until guarantees have been granted that the government will provide through the SACE export credit agency for 80% of the amount.
The two sources said the government would soon give the go-ahead after work on final terms.
The FCA and the Italian Ministry of Finance declined to comment.
The daily Il Sole 24 Ore announced on Sunday that the final terms of the FCA loan included a slight increase in the company's planned investments in Italy from € 5 billion to € 5.2 billion.
Crisis loans in Italy are subject to a number of conditions, including a temporary suspension of the dividend.
However, the newspaper said the terms would allow the Dutch FCA holding company to pay shareholders an extraordinary dividend of 5.5 billion euros once the automaker's proposed merger with French PSA is complete.
The extraordinary dividend was a focus of discussions in Italy about the large government-backed loan.
Il Sole said that the dividend freeze, which expires on December 31, 2020, could be extended for the duration of the FCA loan if it is responsible for delays in industrial projects that are part of its commitments.
A prolonged freeze would affect both FCA Italy and its Dutch holding company, with the exception of the extraordinary dividend payments related to the merger, the paper said.
($ 1 = 0.8949 euros)
(Reporting by Giuseppe Fonte, Stefano Bernabei and Giulio Piovaccari; writing by Valentina Za; editing by David Clarke)
You should check here to buy the best price guaranteed products.
Reality Steve Just Revealed Juicy New Details About 'The Bachelorette' Finale
Alabama football coach Nick Saban receives massive contract extension
AOC Insists: No Bipartisan Infrastructure Plan without $3.5T Partisan Spending Bill
Oklahoma GOP leader was rebuked for doubling down on his comparison of vaccine mandates to gold stars worn by Jewish people during the Holocaust
John Oliver Blasts 'Sex and the City' Revival Without Kim Cattrall | THR News
Kit Harington Is 'Happy' He Took an Acting Break After Game of Thrones : I Had 'Mental Health Difficulties'