European Investment Bank grants Saab a EUR400 million loan
By Andrew C., 27 Aug, 2010. 0 Comments
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After weeks of talks, the European Investment Bank granted Saab a EUR400 million ($599 million) loan, bringing Koenigsegg closer to its target of acquiring Saab. In an interview with Bloomberg, Koenigsegg Chairman Augie Fabela considers the approval of the loan as a "milestone," however, he admits that there still are challenges to face in the goal to revive Saab. The loan from the European Investment Bank solves the dilemma of finding a way to finance the purchase and production of Saab automobiles.
The EIB loan won't cover all costs but it was one of the major contingencies of the transaction. The rest of the financing will be covered by Chinese carmaker Beijing Automotive Holdings Co. as the company agreed to take a minority stake in Saab.
One of the conditions of receiving the loan is that the money must be used to develop fuel-efficient technologies and vehicles as well as advanced safety features. The Swedish government is guaranteeing the EIB loan, which is part of the European Union's aid program for assisting companies affected greatly by the global financial crisis. [via bloomberg]
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