DETROIT: General Motors Co. secured an $ 11 billion revolving credit facility, more than doubling its financial cushion and further strengthening the balance sheet of the largest US automaker.
The additional liquidity comes as GM works to stanch losses at its Opel brand in Europe. GM recently said it was aiming to break even in Europe by the middle of the decade.
The new credit facility replaces a $5 billion line the company secured more than two years ago in the run-up to its initial public offering in November 2010.
The $ 11 billion facility offers better terms as well as the ability to borrow in currencies other than the US dollar, GM said in a statement.
“The new revolver provides a significant source of backup liquidity and financial flexibility, further bolstering our fortress balance sheet,” Chief Financial Officer Dan Ammann said.
The deal gives GM a credit facility comparable to those of other companies close to its size, GM spokesman Dave Roman said. Ford Motor Co, the No. 2 US automaker, boosted its credit facility to $ 9.3 billion earlier this year.
GM’s new credit line consists of a $ 5.5 billion three-year facility and another $ 5.5 billion that matures in November 2017. Its earlier $ 5 billion facility would have matured in 2015.
GM Financial, GM’s in-house finance company, can borrow under the facility.
Thirty-five banks from 14 countries participated in the facility. Ammann said this signaled the financial community’s confidence in GM’s financial condition.
Earlier this year, GM was seeking a credit facility of as much as $ 10 billion, according to people familiar with the matter.
The US presidential race has repeatedly thrown GM into the spotlight, spurring debate about the effect of the company’s 2009 bankruptcy restructuring.
The US government poured $ 50 billion into GM during the financial crisis to help the one-time blue chip avoid liquidation. The US Treasury nearly halved its GM stake during GM’s IPO but still owns 500 million common shares.
GM clinches $11 bln credit facility amid Opel overhaul
GM clinches $11 bln credit facility amid Opel overhaul
Saudi Arabia opens 3rd round of Exploration Empowerment Program
RIYADH: Saudi Arabia’s Ministry of Industry and Mineral Resources, in collaboration with the Ministry of Investment, has opened applications for the third round of the Exploration Empowerment Program, part of ongoing efforts to accelerate mineral exploration in the Kingdom, reduce early-stage investment risks, and attract high-quality investment from local and international mining companies.
The third round of the Exploration Empowerment Program offers a comprehensive support package targeting exploration companies and mineral prospecting license holders.
The initiative aims to lower investment risks for projects and support a faster transition from prospecting to development.
"The program provides coverage of up to 70 percent of the total salaries of Saudi technical staff, such as geologists, during the first two years, increasing to 100 percent thereafter, in line with program requirements.
This support aims to develop talent, build national capabilities in mineral exploration, promote job localization, and facilitate the transfer of geological knowledge.
The application for the third round opened on Jan. 14, allowing participants to benefit from the Kingdom’s attractive investment environment, its stable legal framework, and streamlined regulatory structures, as well as integrated infrastructure that supports the transition from mineral resources to operational mines.
The ministry has set the timeline for the third round, with the application period running from Jan. 14 to March 31.
This will be followed by the evaluation, approval, and signing of agreements from April 1 to May 31, with the eligible projects set to be announced between June 1 and July 31 of the same year.
The program stages include submitting exploration data during the reimbursement and payment phase from Sept. 1 to Nov. 30, followed by technical and financial verification of work programs and approval of the disbursement of support funds in January 2027.
The exploration data will then be published on the National Geological Database in April 2027.
The ministry emphasized that the EEP focuses on supporting the exploration of strategically important minerals with national priority. It also contributes to enhancing geological knowledge by providing up-to-date data that meets international standards, helping investors make informed decisions and supporting the growth of national companies and local supply chains.
The ministry urged companies to apply early to benefit from the program’s third round, which coincided with the fifth edition of the International Mining Conference, which was held from Jan. 13 to 15.
