(John Sommers II for Transport Topics)
Chinese billionaire Li Shufu’s Zhejiang Geely Holding Group Co. has obtained a syndicated loan to refinance borrowings related to its 2018 acquisition of a stake in Volvo AB, according to people familiar with the matter.
The 2.4 billion-euro ($2.5 billion) three-year facility was signed on Feb. 25, the people said, who asked not to be identified discussing private matters. BNP Paribas SA, HSBC Holding Plc and Standard Chartered Plc were among the mandated lead arrangers and book runners of the deal, which drew over 20 lenders when it was syndicated to the broader market, the people added.
A Geely spokesperson declined to comment on the loan.
The signing of the loan comes as the automaker, one of China’s biggest, accelerates its shift toward a more upscale product portfolio, seeking to boost profitability as it ramps up efforts to compete with local peers in electric vehicles.
Proceeds from the facility will be used to refinance a 2.7 billion-euro three-year loan due in May. The borrowing follows a series of refinancing exercises that replaced an original 2.3 billion-euro five-year facility from 2017. The loan had backed Geely’s acquisition of the Swedish automaker.
In January 2024, Geely lowered its stake in Volvo. Four months later, it sold $1.3 billion of the company’s shares, though it remained as the second-largest shareholder.
