Peugeot Sells $4 Billion in Asset-Backed Securities
PSA Peugeot Citroen (UG)’s banking unit sold 3.1 billion euros ($4 billion) in asset-backed securities in 2012 to help its effort to boost financing and end market share losses in Europe’s slumping car market.
The funds were raised in issues last year in France, the U.K., Spain and Italy, the Paris-based manufacturer said today in a statement. The sales of the bonds were part of an 11.5 billion-euro refinancing program to shore up the Paris-based manufacturer’s Banque PSA Finance unit, spokesman Jean-Baptiste Mounier said by phone.
The unit, which provides loans to dealers and car buyers, “increased the share of its funding undertaken through its securitization program, thereby demonstrating its ability to strengthen and diversify its funding sources,” the company said in the statement.
Peugeot, Europe’s second-largest carmaker, has struggled to match loan rates offered by cash-rich Volkswagen AG. (VOW) Peugeot deliveries in the region fell 13 percent through November, and its market share narrowed to 11.7 percent from 12.5 percent a year earlier, according to European carmaking lobby ACEA. VW’s market share rose to 24.9 percent from 23.3 percent.
To contact the reporter on this story: Mathieu Rosemain in Paris at firstname.lastname@example.org