Swedish automobile manufacturer Volvo has signed a loan agreement of €922m with China Development Bank to pay back present loans.
The loan with maturity in 2020 is considered to be the first step of the agreement and is expected to improve the company's financial position with a loan of EUR600m in following years.
Chinese carmaker Zhejiang Geely Holding acquired the Volvo group in china in 2010 from Ford Motor.
In December 2012, the Geely group had signed three technological cooperation agreements with Volvo Cars which would allow the company to use Volvo's mid-size vehicle platform and are expected to be completed in the next two years.
Source:
http://manufacturing.automotive-business-review.com/news/volvo-to-receive-eur922m-loan-141212
