Tyco, the US conglomerate, is insisting that the planned initial public offering of its Tyco Capital subsidiary is not in jeopardy despite the finance arm having to draw on emergency bank loans.

Tyco Capital was forced to follow its parent in tapping into emergency loans after losing the confidence of the debt markets. The company will draw on $8.5bn (€9.8bn) of back-up loans to repay all its commercial paper (CP), short-term debt routinely used by large corporations to manage their liquidity from day to day. Tyco made an identical move on Monday.