This year the two are putting a combined £2.46 billion into PSA, with a further £453 million due following a rights issue in the near future.
From next year another £657m will be released when recently issued warrants can be exercised by shareholders. PSA will receive a total cash injection of around £3.1bn.
The funds will primarily be used for new product development, the financing of the new EMP1 compact platform and for radical new models such as a production version of the super-frugal 208FE concept.
In exchange, the French state and Dongfeng will each receive a 14 per cent stake in PSA, matching the reduced share of the Peugeot family.
The refinancing of PSA comes after company chairman Carlos Tavares announced a new four-year restructuring and recovery plan called ‘Back in the Race’.