Bank of China (Luxembourg Branch) contributes to a €660 million EUR syndicated revolving credit facility to Volvo Car Corporation for refinancing and general corporate purposes

Project narrative

On June 30, 2014, a syndicate of 12 banks — including the Luxembourg Branch of the Bank of China (BOC) — signed a €660 million EUR syndicated revolving credit facility (RCF) agreement with Volvo Personvagnar AB (Volvo Car Corporation) — a Swedish multinational manufacturer of luxury cars headquartered in Torslanda, Gothenburg, Sweden then wholly-owned by Geely Sweden AB, wholly-owned by Geely Sweden Automotive AB, wholly-owned subsidiary of Geely Sweden Holdings AB, itself wholly-owned by Shanghai Geely Zhao Yuan International Investment Co., Ltd., a wholly-owned (indirect) subsidiary of Zhejiang Geely Holding Group Co., Ltd. — for refinancing and general corporate purposes. This RCF carried a maturity period of three years with two one-year extension options and a final maturity date of June 30, 2017 (June 30, 2019 if both extensions were exercised) and an interest rate of EURIBOR (if euro) or LIBOR (or other IBOR) plus a margin based on the borrower's the ratio of consolidated net debt to adjusted consolidated EBITDA, payable on the last day of each term. The RCF was available for drawdown in currencies besides euros. Geely Sweden Automotive AB (renamed in December 2015 as Volvo Car AB) issued a joint and several on-demand guarantee for this RCF. The RCF was governed by English law. The proceeds were to be used by the borrower as a back-up facility for general corporate purposes and to replace (refinance) an existing €360 million EUR RCF signed in February 2013. Record ID#104977 captures BOC's contribution. In addition to BOC, the following lenders contributed to the loan syndicate: the Sweden Branch of DNB Bank ASA, Swedbank AB (publ), ANZ Bank (Europe) Limited, Barclays Bank PLC, BNP Paribas Fortis S.A./N.V. Bankfilial Sverige, HSBC Bank PLC, ING Belgium N.V./S.A., Lloyds Bank PLC, Nordea Bank AB (publ), Santander Bank, Zweigniederlassung Der Santander Consumer Bank AG, and Société Générale S.A. (SocGen). On June 30, 2015, the lending syndicate — still including BOC — entered into an amendment and restatement agreement with the borrowers for the RCF; in the amendment agreement, the lenders extended the maturity period of the RCF by one year — for a new maturity period of four years — for a new final maturity date in July 2018, in line with the first extension option. Record ID#104978 captures BOC's contribution to the debt rescheduling. On December 9, 2015, a supplemental agreement was signed. On March 7, 2016, another supplemental agreement was signed. On April 28, 2016 the borrower requested an extension of the RCF by one, which had not yet been approved as of May 11, 2016. As of May 11, 2016, the RCF had not been drawn.