Volvo AB (VOLVB), the world’s second- largest truckmaker, signed a 1.2 billion-euro ($1.59 billion) revolving credit line, according to data compiled by Bloomberg.
The five-year facility pays interest at 85 basis points more than the euro interbank offered rate and replaces a $1.4 billion credit line signed in 2006, Bloomberg data show.
The new financing is 200 million euros more than 1 billion euros originally sought by the Gothenburg, Sweden-based company.
In a revolving credit, money can be borrowed again once it is repaid. A basis point is 0.01 percentage point.
Stuttgart, Germany-based Daimler AG (DAI) is the world’s largest truckmaker.
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