Following last week's events, when German sports car manufacturer Porsche was denied a state backed 1.75 billion euro loan from German KfW bank, the company has today come to the decision they will seek financing elsewhere, as they do not want do affect their credibility by re-applying for the loan.
Porsche says the loan was required to cover the company's operations, and was not intended to burden the taxpayers. The loan was being considered by analysts "vital for Porsche".
"Porsche Automobil Holding SE, Stuttgart, has been denied a loan for Euro 1.75 billion from the German Kreditanstalt für Wiederaufbau (KfW), following the Company’s application to such effect. In its letter the KfW states that Porsche 'may naturally contact us again at any time with a further application for a loan'. In the interest of the Company’s credibility, Porsche will however not resort to this offer," the company said in a release."
"Porsche has always stated that the loan was to be an operating loan not in any way burdening the German taxpayer. According to the application, the KfW would have joined the syndicated credit now endorsed by 16 banks, which is subject to the usual market interest rates and is backed by Volkswagen shares as collateral."
"Following this decision Porsche will start talks for alternative financing possibilities."
Porsche's decision to no longer pursue a state loan only adds to the rumors that the manufacturer does not need a loan, as it has received an offer from the Qatar Investment Authority (QIA). As we reported earlier today, a company spokesman said "we received an offer from the Qatar Investment Authority (QIA) concerning an investment in Porsche SE and the purchase of options in Volkswagen stock."
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