Volvo Cars signs €660 million revolving credit facility
- Diversified group of 12 banks supports Volvo Cars
- Refinances an existing €360 million revolving credit facility
- Tenor of three years with two one-year options to extend
Volvo Car Group (Volvo Cars) has signed a €660 million revolving credit facility with a group of leading global and regional banks, underlining growing global confidence in the Swedish car company’s financial and operational transformation.
The €660 million revolving credit facility extends an existing €360 million revolving credit facility signed early in 2013. It will serve as a back-up facility for general corporate purposes and has a tenor of three years with two extension options of one year each.
The new credit facility broadens the group of banks working with Volvo Cars. DNB and Swedbank acted as coordinators and the existing group of six banks has been extended to 12 participating banks. The banks within the group are well diversified and will form the core relationship bank group for Volvo Cars globally.
Volvo Car Group in 2013
For the 2013 financial year, Volvo Car Group recorded an operating profit of 1,919 MSEK (66 MSEK in 2012). Revenue over the period amounted to 122,245 MSEK (124,547 MSEK), while net income amounted to 960 MSEK (-542 MSEK). Global retail sales for the year amounted to 427,840 (421,951) cars, an increase of 1.4 per cent compared to 2012. The operating profit was the result of cost control and strong sales and was further tangible proof of Volvo Car Group’s progress in implementing its transformation plan. For the full year 2014, the company expects to stay in black figures and predicts to record a global sales increase of a good 5 per cent.
About Volvo Car Group
Volvo has been in operation since 1927. Today, Volvo Cars is one of the most well-known and respected car brands in the world with sales of 427,000 in 2013 in about 100 countries. Volvo Cars has been under the ownership of the Zhejiang Geely Holding (Geely Holding) of China since 2010. It formed part of the Swedish Volvo Group until 1999, when the company was bought by Ford Motor Company of the US. In 2010, Volvo Cars was acquired by Geely Holding.
As of December 2013, Volvo Cars had over 23,000 employees worldwide. Volvo Cars head office, product development, marketing and administration functions are mainly located in Gothenburg, Sweden. Volvo Cars head office for China is located in Shanghai. The company’s main car production plants are located in Gothenburg (Sweden), Ghent (Belgium) and Chengdu (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China).