Geely seeking at least $1 billion in loans from Chinese banks for Volvo deal

Article by Christian Andrei, on August 26, 2010

At least three major Chinese banks have Geely back as it pursues its bid for Ford Motor Co. Volvo unit. Geely has already been named the preferred bidder but for the agreement to proceed, Ford had asked about Geely financing plans.

Sources say that banking sources are the least of Geely problems as so far, Bank of China, China Construction Bank and Export-Import Bank of China had agreed to extend loans to Zhejiang Geely Holding Group. Export-Import Bank of China is a policy lender wholly owned by the Chinese government and directly led by the cabinet.

Bank of China is China's top foreign exchange lender. Lastly, China Construction Bank is the country's No.1 property lender. Sources add that Geely is seeking at least $1 billion in loans from Chinese banks to finance its $1.8 billion bid.

Geely (translated as luck in Chinese) is keen on acquiring modern and innovative technologies from the Swedish brand Volvo in order to upgrade its cars and take advantage of the burgeoning car market in China.

With this goal in mind, Geely has strong support from Chinese banks. In addition, there are several private equity funds queuing up to invest in Geely. Initial talks took place last month between representatives of Ford and Geely. To date, all signs are pointing to Geely success at getting its bid accepted.

Topics: loan, geely, volvo

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 2017
As if seeing the future more than a decade from now, one of the top scientists in the world of robotics and automations is predicting that children born today won’t...
by - January 19, 2017
Ford has just recently unveiled the 2018 Ford Mustang, and as it turned out, the carmaker gave its beloved pony car a facelift. There have been mixed reactions about the...
by - January 19, 2017
The bidding war for one of the only 20 examples -- 21 actually, but the 00 version went to a museum -- of the classically beautiful Lamborghini Reventon built and...
by - January 18, 2017
Bentley once again confirmed its plans to push PHEV into their future lineups. As a matter of fact, the Bentayga SUV will be the first to have the plugin hybrid...
by - January 18, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries