Sweden guarantees $500 mln EIB loan to Volvo Cars

STOCKHOLM, Dec 22 (BestGrowthStock) – Sweden decided on Wednesday to
give a state guarantee for a loan worth 3.55 billion crowns
($521 million) to Volvo Cars, owned by China’s Zhejiang Geely
Holding Corp, from the European Investment Bank.

The government said in a statement that the EIB loan was
aimed at helping Volvo, which was bought by Geely from Ford
(F.N: ), to develop competitive, environmentally friendly cars.

“At the same time, this builds long-term conditions for
Volvo’s operations and jobs in Sweden,” Economy Minister Maud
Olofsson said in a statement.

Zhejian Geely, parent of Hong Kong-listed Geely Automobile
(0175.HK: ), completed the purchase of Volvo in August, paying
$1.3 billion in cash and issuing Ford a $200 million note.

The deal was the biggest overseas takeover by a Chinese
company in the automotive sector.

Sweden’s other main car producer, Saab, was also sold in the
aftermath of the global crisis, with General Motors (GM.N: )
selling it to Dutch sports car maker Spyker (SPYKR.AS: ).
($1=6.813 Swedish Crown)
(Reporting by Patrick Lannin; Editing by Jon Loades-Carter)

Sweden guarantees $500 mln EIB loan to Volvo Cars