Tag Archives: National Debt Office

Saab Automobile’s EIB Loan With European Commission

Posted on 05. Nov, 2009 by .

0

Here’s an article from The local about Saab Automobile’s EIB Loan process with the European Commission.

Please note this was written by the Local, not expressing any opinions or facts.

An emergency loan vital to completing the sale of Saab Automobile has been held up by questions from the European Commission, possibly jeopardizing the proposed deal.

The Commission has a number of questions about the state guarantees provided by Sweden in connection with the loan, which recently won approval from the European Investment Bank (EIB).

The scrutiny from officials in Brussels means the deadline for final approval of the loan could be pushed back as late as January.

Saab’s current owners, US-based General Motors (GM) has been clear about wanting to sell the troubled unit by the end of the year at the latest.

Having the loan in place is a prerequisite for luxury Swedish carmaker Koenigsegg and China’s BAIC to complete their proposed purchase of Saab.

According to a document reviewed by the TT news agency, the European Commission wants assurances that Saab did not have economic problems last summer which could have impeded eligibility for state subsidies.

In addition, the Commission wants additional information about the model used by the National Debt Office (Riksgälden) in showing that Saab was eligible for state guarantees for the entire loan.

The Swedish government can only begin to examine whether it will actually guarantee the approximately 4 billion kronor ($570 million) loan after the Commission issues its ruling.

Until then, Saab won’t have access to the money and the deal which would make Koenigsegg Group the automaker’s new owner can’t be completed.

An initial agreement signed by GM and Koenigsegg Group in June included language stipulating that the deal would be completed by the end of September.

Earlier this autumn, Saab CEO Jan Ã…ke Jonsson warned that the sale would not be complete until the end of October.

Now Saab spokesperson Eric Geers has indicated that a few more weeks may elapse before pen can be put to paper – but everything hinges on a decision from the European Commission.

After receiving the additional information now requested from Sweden by the Commission, it has two months to issue a ruling on whether or not to approve the loan.

With the material not expected to be in the hands of the Commission before November 17th, it may take until January for a final ruling, although the Commission may reach a decision earlier.

Continue Reading

Sweden’s E24 On The EIB Loan Decision For Saab Tomorrow.

Posted on 21. Oct, 2009 by .

0

Sweden’s E24 have provided a nice piece on what we can “hopefully” expect tomorrow when the EIB meet to determine the fate of Saab Automobile’s loan.

It’s very positive, of course optimistic given that it is before the loan decision, but it’s nice to read.

On Wednesday board meeting of the European Investment Bank, EIB. And the agenda is the development loan of just over 4 billion to Saab.

The investors behind the Koenigsegg Group, including CEO Christian von Koenigsegg and the Norwegian Bard Eker, have themselves expressed that the EIB loan is a precondition for the deal to go through.

Saab’s own assessment is that the EIB’s reply will be positive.

– We assess the probability as fairly high that the bank grants the loan, “says Eric Geers, Communications Director at Saab.

He is also hopeful that Koenigsegg Group, after all, be able to complete the acquisition of Saab, and this shortly.

– We have had very positive meetings with all parties involved. Everything rolls on as planned. Maybe we can finish the whole affair at the end of this month, said Eric Geers.

But even if the Bank gives a positive decision on Wednesday is still several pieces of the puzzle before the deal can fall into place.

– The Board’s decision is actually an authorization to initiate detailed negotiations on the financial contracts. It is so, then the detailed negotiations begin, “says Eva Srejber, Vice President of the EIB.

– The journey is not over, but the Board’s decision is obviously one of the most important milestones.

And the Bank will only loan conditional to the Swedish state-guaranteed loan. It remains also for the European Commission to assess whether the structure of government guarantee is in line with EU competition rules.

In the case of state guarantees, the Debt Office is making a recommendation to the Government which in turn take the decision itself.

Erik Sjulander, Head of Debt Office, has previously told the Norwegian press that the goal has been to the National Debt Office will be finished with its evaluation later than 21 October which is thus on Wednesday.

– It’s basically the ambition that we have. Since we depend on a lot of information from the EIB in order to complete our work. They include the term of the loan, the repayment schedule looks like and the exact amount. Ultimately, we need the EU Commission’s decision, “says Erik Sjulander.

– But we are working of course the question remains, and so it looks good.

EU Commission’s basic rule is that you must not give support to companies in financial crisis. Enterprises must be deemed viable.

While Saab has delivered year after year loss figures and last week presented the automaker’s sales figures which were really bad. In September, sales plummeted almost 62 percent compared with a year earlier. That compares with Volvo as sales grew by over 8 percent.

But the latest shock figures will at least not affect SNDO decisions in a decisive way.

– When we look at the business plan we look at the big picture – and to hear, of course, how Saab is now, but the business we are looking at is, after all, primarily forward looking, “says Erik Sjulander.

Continue Reading

Saab History Receives Clarity From Saab Automobile On Swedish Governments Request To European Commission

Posted on 06. Oct, 2009 by .

0

Saab History has requested and now has received more clarity on the European Investment Bank loan status from Saab Automobile’s Anna Petre, head of Government relations.

A thank you to her for giving us the details, particularly with the three remaining items listed below.

They have not granted the loan yet. The Government have asked the European Commission for a so called notification of the state guarantee. Since Sweden is a member of the European Union there are certain rules for when state aid is permitted and by this notification the EU Commission will see to that the state guarantee for Saab is ok according to EU regulation.

There are three parallel processes that have to be finalized (preferably in the same time frame) before we get the EIB loan. All three are on going and on track.

1. EIB application approved by the EIB Board
2. Finalize negotiations with the National Debt Office regarding the terms
of the state guarantee
3. EU Commission approval of the state guarantee (Swedish Government Seeks Approval On Friday)

Best Regards

Anna

Continue Reading

European Investment Bank Decides On Koenigsegg Group Loan For Future Eco Products On October 21st

Posted on 29. Sep, 2009 by .

0

The European Investment Bank decides on the Koenigsegg Loan on October 21st according to E24. This loan application, if granted, will provide Saab Automobile the money for future environmentally friendly technologies in future products.

In my dialogue with the EIB, this date is still on schedule, and realize that the decision will dictate the future direction for Saab Automobile’s products, moving forward.

The big issue with this loan is that it still needs the Swedish Government’s approval for it as a guarantor, then it goes to the European Commission to be signed off on and finally to the EIB. That entire process needs to take place by October 21st. That’s a lot of paperwork shuffling for some big bureaucracies, so I wish them all luck with this loan being fast tracked by then.

Here’s the article by E24 below.

European Investment Bank, EIB, has since Koenigsegg Group submitted a loan application for 400 million euros worked to evaluate it. About three weeks, on October 21, the EIB should take a decision – yes or no.

But this applies only if further detailed negotiations. This means that Koenigsegg Group and Saab may have to wait for the money for next year.

– The Board may, in October to give its approval for continuation of detailed negotiations on financial contracts, but I can not say how long it takes before any loan can be paid. It can take months, says Eva Srejber, Vice President of the EIB.

Just over two weeks ago signed the Beijing Automotive, BAIC, a letter of intent with the Koenigsegg Group to become minority shareholders and go in with a capital.

That an agreement between the companies are not likely to be clear about three weeks is not crucial for the Bank’s approval. Eva Srejber says that much can happen after 21 October and that the bank may choose to say no to a loan at a later stage.

– If Koenigsegg Group agrees to our demands, the process will go faster.

But while the EIB and the Koenigsegg Group for a dialogue on the possible loan of three other ongoing processes in parallel. The commission must give its “no objection”, which means it has no objection to the loan, and the government, the Commission and the borrower must agree on whether the state guarantee in line with state aid rules.

In addition, the National Debt Office along with the government agreeing with Koenigsegg Group on the terms of this guarantee.

Secretary of State Joran Hagglund (C), which is the government’s chief negotiator in the deal, saying that there are constant updates due to changing demands from the EIB and the Government.

– There is much work left to do and we need to be agreed on several important points before we take a decision. But I can not say how the business plan has been revised.

According to Joran Hagglund, the business plan, stress tested on many occasions, which means that you are testing it under different economic conditions. But he would not respond to what stress tests have shown.

The EIB, which demands that any loan will contribute to better environmental development and security. Currently watching the EIB in the business plan and the bank makes a thorough review. And the government believes it is important that Saab can be competitive in a number of markets in order to display the loan guarantees.

– Our starting point is that we will be ready with our work and can agree with the Koenigsegg until the Bank takes its decisions in three weeks.

Continue Reading




Production Concept