Volvo Car Group (Volvo Cars) and China Development Bank have signed a loan agreement under the umbrella of the strategic partnership, as announced in the Memorandum of Understanding of April 24 2012.
The loan agreement is testament to China Development Bank's belief in the strength and viability of the Volvo Cars global business plan and corporate strategy.
As a first step under the agreement, the parties have signed a EUR 922 million loan with a maturity in 2020. This loan will be used for a refinancing of Volvo Cars' current loans. The new loan will improve Volvo Cars' loan maturity structure with approximately EUR 600 million in the coming years.