Bloomberg News

Volvo Obtains 1.2 Billion-Euro, Five-Year Revolving Credit Line

March 29, 2012

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.

To contact the reporter on this story: Louise Meeson in London at

To contact the editor responsible for this story: Faris Khan at

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