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Volvo Cars raises EUR 500 million in new bond issue

Volvo Cars raises EUR 500 million in new bond issue

 

Volvo Cars, the premium car maker, has raised EUR 500 million via a new bond issue under its newly established Euro Medium Term Note Programme. The issue further improves the company’s financial flexibility and diversifies its funding sources.

 

The bond will be listed on the Official List of the Luxembourg Stock Exchange and the proceeds will be used for general corporate purposes. The bond matures in January 2025, pays a fixed coupon of 2.00 per cent, equivalent to mid-swap +150.7 bps.

 

Volvo Cars currently has a corporate rating from Moody’s Investors Service (Moody’s) of Ba2, as well as a BB+ rating from Standard & Poor’s (S&P). Both Moody’s and S&P maintain a stable outlook for Volvo Cars.

 

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This communication is not an offer of securities for sale in the United States or any other jurisdiction. Volvo Cars has not registered, and does not intend to register, any portion of the securities in any of these jurisdictions and does not intend to conduct a public offering of securities in any of these jurisdictions. In particular, the securities have not been and will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (as defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable state securities laws.

 

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Volvo Car Group in 2016

For the 2016 financial year, Volvo Car Group recorded an operating profit of 11,014 MSEK (6,620 MSEK in 2015). Revenue over the period amounted to 180,672 MSEK (164,043 MSEK). For the full year 2016, global sales reached a record 534,332 cars, an increase of 6.2 per cent versus 2015. The record sales and operating profit cleared the way for Volvo Car Group to continue investing in its global transformation plan.

 

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 534,332 cars in 2016 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 2016, Volvo Cars had over 31,000 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), Chengdu and Daqing (China), while engines are manufactured in Skövde (Sweden) and Zhangjiakou (China) and body components in Olofström (Sweden).

 

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Descriptions and facts in this press material relate to Volvo Car Group's international car range. Described features might be optional. Vehicle specifications may vary from one country to another and may be altered without prior notification.

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