Saab Automobile European Investment Bank Loan Process

Posted on 13. Aug, 2009 by in 2000-2009

Saab Automobile’s progress in the European Investment Bank loan has been covered on Sweden’s E24 website as of late.

“We do not have lower standards than a traditional bank. Historically, it has rather been on the contrary, “says Eva Srejber, Deputy Head of the EIB, which will assess the Saab’s application for a loan of just over 4 billion.

Yesterday, the investors behind Koenigsegg Group data to the Bank on the new Saab could look like after an acquisition.

The information includes an income statement, balance sheet, new financial plan forecasts of future revenue and a stress test.

It is the same information presented to, among other government representative Jöran Hägglund at yesterday’s meeting with Koenigsegg consortium. In order to EIB will approve the loan required that the State enters as the guarantor.

But there is no extra break the bank to process the application for loans to finance research and development projects in order to produce more environmentally friendly cars.

– We want our money back and we do not have lower standards than a traditional bank. Historically, it has rather been the opposite. The fact that a company receives a loan of us have been perceived as a quality of other banks, “says Eva Srejber, Deputy Head of the EIB, which will be on the assessment of loan applications.

And now, they more or less secret investors behind Koenigsegg Group nagelfaras.

– Of course, we will review everything very carefully. It is the company itself, which must have a long-term survivability. We in the EIB pipeline, and the bank’s board, must consider that it is likely that the company can pay back the loan, “says Eva Srejber.

EIB own transport economists to examine the application from an economic and financial perspective.

– We are considering including in the balance sheet strength, future income projections pm, any deposits and guarantees. We have political objectives, but within the policy objectives, we work as the bank any time.

But if the government / Riksgälden decides to guarantee the loan, then it is well, no doubt that you grant it?

– Bank’s staff and management will always do their own assessment. But the bank is owned by the 27 member countries, and representatives of national governments on the Board. It is unlikely that Riksgälden and EIB come to different conclusions. Both have an interest in the loan is repaid.

How strict is the assessment as to the projects you accept?

– It may be a variety of things that makes a car less negative environmental impact. It may be the tires, weight or shape of the car or the entire drive system, engine or fuel. We can also finance development projects to produce cars that are safer, to reduce the accident rate.

But all the research goes well the idea is that you should develop safer and more environmentally friendly cars. It sounds like you can imagine that underpin all research in a car?

– You are right that most car conducting a research with a focus on reducing environmental impacts. And it has to do with the future requirements that cars must meet. It is our engineers to evaluate which projects we can accept, “says Eva Srejber.

But even if the Bank approves the loan application, are financing problems are not solved for Koenigsegg Group.

The company may only fund half the project cost with loans from the EIB.

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