Volvo Car Group (Volvo Cars) has signed two loan agreements with financial partners.
The first agreement is an unsecured working capital back-up facility of EUR240m (US$321.98m) with a maturity of three years. Swedish bank Nordea and ING Belgium have acted as coordinators for the facility, with Norwegian bank DNB and Swedbank of Sweden as additional participating banks. This transaction is important for Volvo Cars in order to develop its core relationship bank group.
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In addition, Volvo Cars has entered into an unsecured loan agreement with Swedish Export Credit Corporation of SEK1bn. This facility is for general corporate purposes and has a maturity of three years. The state-owned Swedish Export Credit Corporation provides customised financial solutions to the Swedish export industry.
Volvo Cars is undergoing a turnaround plan to get it to profitability under its Chinese owner, Geely. It is currently engaged on an intensive round of restructuring and cost-cutting.
