By Zaida Espana and Tessa Walsh

LONDON, Nov 6 (Reuters) - German carmaker Porsche SE is pushing to agree an 8.5 billion euro ($12.6 billion) loan by Nov. 10, two bankers close to the deal said on Friday.
The loan has been reduced from an earlier figure of 10.5 billion euros using proceeds of the planned sale of 49.9 percent of its sportscar making unit Porsche AG to Volkswagen AG , the two bankers said.
Porsche has given its bankers a tight deadline to respond by Nov.10, both bankers said, and is aiming to sign the loan agreement by Nov.16, the first banker said.
Nobody at Porsche could immediately be reached for comment.
Porsche is seeking an agreement from its banks before a board meeting on Nov. 11, which is a key date for its planned merger with Volkswagen, the two bankers said.
Volkswagen's board cannot agree the purchase without the loan financing, which in turn cannot go ahead unless the purchase is ratified, the first banker said.
The speed of the refinancing is also being driven by the merger process, specifically the imminent expiry of Porsche options over Volkswagen shares, he added.
The 8.5 billion euro loan, which is being led by structuring banks Citigroup, Deutsche Bank and UBS, will reduce Porsche's borrowing costs and extend the maturity of its debt by two to three years.
Porsche was originally trying to amend the terms of an earlier 10.5 billion euro loan to accomodate its merger with Volkswagen, but has instead launched a new 8.5 billion euro loan.
"Once again they are making life difficult for themselves," the first banker said regarding the timetable, adding that banks are likely to recommit to the loan, but are unhappy about the schedule.

The new 8.5 billion euro loan consists of a 2.5 billion euro term loan that matures in June 2011 and a 4.5 billion euro term loan maturing in December 2011, the two bankers said.
A 1.5 billion euro revolving credit facility maturing in December 2011 has also been included that can be increased to 1.9 billion euros as the term loans are repaid, the second banker said. The facility can be extended for a further year, the second banker said.
Interest margins have been cut from the punitive rate of up to 475 basis points over EURIBOR that Porsche was forced to pay after failing to obtain a credit rating to 300 bps and 400 bps if the revolving credit is extended, the bankers said.
Volkswagen is rated A- by Standard and Poor's, A3 by Moody's and BBB+ by Fitch, while the first banker said that Porsche is currently viewed as a BB credit.
Banks are being offered fees of 85 bps to recommit to the loan, below the current market rate of around 100 bps.

(Reporting by Zaida Espana & Tessa Walsh; Editing by Hans Peters)

($1=.6734 Euro) Keywords: PORSCHE LOAN/ (zaida.espana@reuters.com; +44-20-7542-7996; Reuters Messaging zaida.espana@reuters.com@reuters.net)

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