"Due to current market conditions, Societe Generale has extended a liquidity facility designed to fully support the liquidity requirements of PACE (Premier Asset Collateralised Entity), the sole structured investment Vehicle that the group sponsors," SocGen said in a statement.
PARIS (Reuters) - Societe Generale <SOGN.PA>, France's second-biggest listed bank, said on Monday it would consolidate its PACE structured investment vehicle (SIV) due to tough market conditions and would refinance it.
"Due to current market conditions, Societe Generale has extended a liquidity facility designed to fully support the liquidity requirements of PACE (Premier Asset Collateralised Entity), the sole structured investment Vehicle that the group sponsors," SocGen said in a statement.
"The group remains confident in the underlying quality of assets acquired," it added.
SocGen said that the PACE investment vehicle had a total asset size of $4.3 billion as of November 30, 2007.
!ADVERTISEMENT!The French bank said that its consolidation of PACE would have an impact of around 0.05 percent on its Tier 1 ratio.
(Reporting by Sudip Kar-Gupta)
