US banks JP Morgan and Citigroup are set to launch the syndication of a jumbo $6.8bn (€4.6bn) loan for US auto parts maker Delphi this week in an effort to help finance the company’s expected emergence from bankruptcy.

The sale, which could provide a fresh indication of appetite among investors for corporate loans, comes just days after Delphi obtained court approval for its unsecured creditors and equity holders to participate in the syndication process.