By Christoph Rauwald
FRANKFURT (MarketWatch) -- Porsche Automobil Holding SE (POR3.XE) said Wednesday it has fully drawn a EUR10 billion credit line.
In a statement, Porsche said through this move it secures favorable interest terms, which would otherwise expire.
"This is first and foremost a technical step. The raised amount will be invested risk-free (and) for a good interest and brings Porsche additional earnings," the Stuttgart-based sportscar maker said.
The credit line was originally worth EUR35 billion and had been arranged for Porsche's mandatory takeover offer for Volkswagen AG in May 2007.
Porsche said after the takeover offer expired last year that it had reduced the credit line to EUR10 billion from EUR35 billion and had extended its use "to include general business purposes".
The banking consortium arranging the credit line comprised ABN Amro Holding NV , Barclays PLC /zigman2/quotes/206581728/composite BCS +1.06% , Merrill Lynch International , UBS AG /zigman2/quotes/206172872/composite UBS +2.82% and Commerzbank AG /zigman2/quotes/202066109/delayed CRZBY +1.34% .
Company Web site: www.porsche.com