Volvo and China Development Bank sign loan agreement

Volvo Car Group, owned by Chinese automakers – Geeley, stated on Thursday that they, along with China Development Bank (CDB) have signed a loan agreement…

Volvo Car Group, owned by Chinese automakers – Geeley, stated on Thursday that they, along with China Development Bank (CDB) have signed a loan agreement pact. This joint venture was announced in Memorandum of Understanding of April 24, 2012 and speaks of the confidence and conviction that CDB has in Volvo Cars business strategy.

The two parties have signed a €922 million agreement with maturity in 2020 during which refinancing of Volvo Cars will be possible. This new agreement will also go a long way in enhancing loan maturity structure for the company.

Volvo Car Group has reported global retail sales to the tune of 35,864 units in the month of November 2012, a 6.5% decline as compared to sales in November 2011. Volvo XC60 crossover did well in US markets receiving a 26.8% boost in demand. United States are major markets for the Group and retail sales in the country during the month of November stood at 6,145 units. XC60 crossover sales alone stood at 2,068 units during the month up by 47% during the 11 month period January to November 2012.