European Investment Bank Loan Approved For Koenigsegg & Saab!

Posted on 21. Oct, 2009 by Ryan in 2000-2009

The European Investment Bank has approved the $400 Million Euro loan for Saab Automobile AB!

This monumental milestone is now going to help finalize the sale of Saab from GM to Koenigsegg.

The next steps in this loan process are for the European Commission to accept it, then for the Swedish Government to endorse the loan as a guarantor, then it’s a done deal.

Today is a great day, we should all look forward to the sales process being wrapped up shortly once the next few steps are completed.

Here is the official press release from the EIB’s website as Saab Automobile has yet to make a public statement.

EIB Board approves further EUR 600m in loans for the automotive industry

* Release date: 21 October 2009
* Reference: 2009-207-EN

The European Investment Bank’s Board of Directors today approved loans to European-based car makers worth a total of EUR 600m.

One of the loans approved today amounts to EUR 400m for SAAB Automobile AB. The loan will be used for research and development activities for the improvement of fuel efficiency and safety including new tooling for the production of cleaner and safer cars, subject to the European Commission’s approval of the Swedish state guarantee.

In total, since December 2008 the EIB has approved loans to the automotive sector (manufacturers and suppliers) worth EUR 7.56bn, whereof EUR 4.52bn under the EIB’s European Clean Transport Facility (ECTF). EUR 320m out of the EUR 400m approved for SAAB would be provided under the ECTF. The Facility, part of the EIB’s wider response under the European Economic Recovery Package, targets significant cuts in vehicles’ CO2 emissions through research, development and innovation, as well as the production of cleaner and more fuel-efficient cars and other transport and also through tangible fixed assets in related infrastructure and production plants. The remainder is intended to help SAAB improve the active and passive safety of its future vehicles.

After the approval of the operations the contracts will be negotiated and signed, followed by disbursement according to the progress of the projects. In 2009, EUR 3.6bn has already been disbursed to the automotive sector and it is forecast that this will reach around EUR 6.0bn by year-end. Further disbursements will follow in 2010.

Note for the editor:

The European Investment Bank was created by the Treaty of Rome in 1958 as the long-term lending bank of the European Union. The task of the Bank is to contribute towards the integration, balanced development and economic and social cohesion of the EU Member States. The EIB raises substantial volumes of funds on the capital markets which it lends on favourable terms to projects furthering EU policy objectives. The EIB continuously adapts its activity to developments in EU policies.

* press@eib.org
* +352 43 79 – 21000

Tags: Automotive Component Group, editor, EIB Board, EUR, European Clean Transport Facility, European Commission, European Investment Bank’s Board of Directors, European Union, GM, Swedish Government, USD