The borrowing follows a series of refinancing exercises that replaced an original 2.3 billion euros five-year facility from 2017
CHINESE billionaire Li Shufu’s Zhejiang Geely Holding Group has obtained a syndicated loan to refinance borrowings related to its 2018 acquisition of a stake in Volvo, according to sources familiar with the matter.
The 2.4 billion euros (S$3.4 billion) three-year facility was signed on Feb 25, the sources said, who asked not to be identified discussing private matters. BNP Paribas, HSBC Holding and Standard Chartered were among the mandated lead arrangers and bookrunners of the deal, which drew over 20 lenders when it was syndicated to the broader market, the sources added.
A Geely spokesperson declined to comment on the loan.
The signing of the loan comes as the automaker, one of China’s biggest, accelerates its shift towards a more upscale product portfolio, seeking to boost profitability as it ramps up efforts to compete with local peers in electric vehicles.
Proceeds from the facility will be used to refinance a 2.7 billion euros three-year loan due in May. The borrowing follows a series of refinancing exercises that replaced an original 2.3 billion euros five-year facility from 2017. The loan had backed Geely’s acquisition of the Swedish automaker.
In January 2024, Geely lowered its stake in Volvo. Four months later, it sold US$1.3 billion of the company’s shares, though it remained as the second-largest shareholder. BLOOMBERG
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