Ally Financial Inc., the U.S. government-owned auto-finance firm, got $11 billion of credit lines to fund automotive loans and leases.
The funding, being provided by a group of 19 lenders, was reduced by $4 billion as the company has become less reliant on raising money in the capital markets due to growth in deposits at its banking subsidiary Ally Bank, according to a statement from Ally Financial distributed today by PR Newswire.
“Supporting continued growth of our leading U.S. auto finance franchise through diversified funding sources remains an important priority at Ally, and renewal of these facilities is a key component of that strategy,” Chris Halmy, Ally’s corporate treasurer, said in the statement.
The Detroit-based company, which received a $17.2 billion bailout that left the U.S. Treasury Department with a 74 percent stake, had its capital plan rejected by the Federal Reserve after regulators deemed its capital ratios didn’t meet standards.
The $11 billion of financing consists of an $8.5 billion credit line for Ally Financial that will mature in two years, and $2.5 billion of credit due in June 2014 that will be available to Ally Bank, according to the statement.
The loans replace two revolving credit lines totaling about $15 billion, one that was set to mature this month and the other maturing in March 2014, according to data compiled by Bloomberg.