Mitsubishi and PSA Peugeot Citroen are planning to borrow EUR320m to triple the production capacity of their Russian Joint Venture (JV).
In June 2012, both the companies will extract seven-year loans valuing EUR170m from the European Bank for Reconstruction and Development (EBRD), which will also include EUR60m worth of ruble-denominated credit.
According to the reports, the dual will also borrow EUR150m in five-year loans from Societe Generale and other European financial institutions.
EBRD and the other European banks have decided to aid the carmakers by providing loans to further enhance their business strategy and strengthen the business foundation.
The Russian JV, which is 70% owned by PSA and 30% by Mitsubishi, had begun the production of cars under the two companies' names in March 2010.
Both the carmakers are planning to increase their annual production of the JV at 125,000 units from the current 40,000 units, and increase the purchase of parts from local suppliers.
Mitsubishi is planning to stop the local production in Europe following its efforts to streamline operations.
According to reports, the sales of new cars in Russia are expected to 15% to about 3 million units this year.
