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Volvo Cars raises over $200 million from new euro bond
Sweden`s Volvo Cars issued a bond worth 2 billion Swedish crowns ($214.65 million), it said on Wednesday, just five months after the Chinese-owned carmaker terminated plans to list itself blaming trade tensions and a downturn in automotive stocks.
The funds from the bond sale add to Volvo`s coffers at a time when carmakers need cash to develop electric and driverless cars and also face mounting costs from a prolonged U.S.-China trade war and slowdown in large auto markets China and Europe.
Volvo, which is developing Polestar as an electrified performance brand and owns a stake in Chinese owner Geely`s stablemate Lynk & Co, has repeatedly said it will finance electric and autonomous vehicle development from existing cash flows.
The new bond, which matures in February 2023 and pays a floating coupon of STIBOR plus 2.30 percent, will be used for general corporate purposes and not for a specific project, a Volvo spokesman said on Wednesday.
The bond was issued under Volvo`s Euro Medium Term Note programme and Handelsbanken, Nordea and SEB acted as bookrunners on the transaction.
($1 = 9.3175 Swedish crowns)
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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