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Volvo Group enters into a SEK 6.2 billion loan agreement

Volvo Treasury AB (publ), a subsidiary in the Volvo Group, has successfully entered into a SEK 6.2 bn (YEN 110 bn) cross-border syndicated loan agreement. Volvo Treasury has decided to use syndicated lending in this case as a means of diversifying its funding source.
“Japan is an important market for the Volvo Group and this transaction demonstrates that the Volvo Group has established a long-term relationship with several important financial institutions in Japan” says Anders Osberg, President of Volvo Treasury.

The syndicated loan was executed in the form of a “Ninja Loan”1, whereby several Japanese financial institutions provide financing for the overseas borrower Volvo Treasury.

The transaction, which was handled by Mizuho Corporate Bank, Ltd, is the largest Ninja Loan so far to a new international borrower in Japan in terms of both volume and number of banks that participated.

1) A type of syndicated lending in which two or more domestic financial institutions provide funding to non-Japanese corporate borrowers domiciled overseas, from the Japanese banking market.

 

1. Type of Deal:

Syndicated Term Loan

2. Total Facility Amount:

110 Billion yen

3. Signing Date:

July 11, 2008

4. Borrowing Date:

July 17, 2008

5. Final Maturity Date:

July 19, 2011 and July 17 2013, respectively between the three and five year tranches

6. Interest Rates:

Variable Rate based on interbank offered rate

7. MLA & Bookrunner:

Mizuho Corporate Bank, Ltd.

8. Agent:

Mizuho Corporate Bank, Ltd.

9. Participating Lenders:

17 Japanese domestic financial institutions


This information was published on July 11, 2008 at 09:00 CET

July 11, 2008

For reporters who want more information, please contact Christer Johansson, +46 31 66 13 34.