Swedish automobile manufacturer Volvo Car Group has signed an $800m loan agreement with China Development Bank to support its product development program and strengthen its capital structure over the coming years.
With a maturity in 2021, the first drawdown under the loan agreement will take place in 2013, with further drawdowns planned during 2014 and early 2015.
This is second loan agreement for Volvo with the bank, which follows a EUR922m loan agreement signed in 2012.
Volvo Car Group chief financial officer Hans Oscarsson said: "This agreement is a further proof of the good relationship between Volvo Car Group and China Development Bank."
Earlier this month, the carmaker commenced the production of Volvo S60L vehicles at Chengdu manufacturing plant in China.
This move is part of the company's plan to grow its business in China and sell 800,000 cars globally.
The company expects to introduce seashell-colored Volvo S60L as the first vehicle from this plant.
Image: Volvo Car Group also commenced the production of Volvo S60L vehicles this month in China. Photo: courtesy of Volvo Car Group.
