Volvo Cars signs EUR 1.3bn revolving credit facility
Volvo Car Group (Volvo Cars) has signed a five-year, EUR 1.3bn 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 EUR 1.3bn revolving credit facility replaces the existing EUR 660 million revolving credit facility signed in June 2014. It will serve as a back-up facility for general corporate purposes and has a tenor of five years. The new credit facility broadens the group of banks working with Volvo Cars.
BNP Paribas, HSBC, ING and Nordea acted as coordinators and the existing group of 12 banks has been extended to 22 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 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).