Volvo Cars, owned by the Chinese automaker Geely, said Thursday that it had received a loan of €922 million ($1.2 billion) from the state-owned China Development Bank to refinance Volvo’s other loans.
According to the Local, The loan which matures in 2020 will improve the structure of Volvo Cars’ borrowings, with the company having approximately 600 million euros due in the coming years, Volvo Cars said in a statement.
“The loan agreement is testament to China Development Bank’s belief in the strength and viability of the Volvo Cars global business plan and corporate strategy,” said the automaker.
Volvo Cars, which was acquired by Geely from Ford in 2010, is seeking to boost sales in China as the European market continues to skid.
China Development Bank says on its website that in addition to financing infrastructure and public development projects in the country, it also finances cross-border investment and global business cooperation.