Geely seeks bank loans to back $1.8 billion Volvo deal

• Source: Global Times
• [17:42 December 01 2009]
• Comments

As the preferred bidder for Ford Motor's Volvo unit, China's Geely Holding Group is seeking at least $1 billion in loans from Chinese banks to support its $1.8 billion bid, Reuters reported Tuesday, citing sources.

At least three major Chinese banks, including Bank of China, China Construction Bank and Export-Import Bank of China had agreed to extend loans to the automaker, said banking sources briefed on the plan.

"Money is not a problem for Geely," said a source. "They definitely have strong support from Chinese banks and there are a number of private equity funds queuing up to invest in Geely."

Geely and all three banks involved declined to comment on the matter.

Agencies and Shi Jierui contributed to this story