IMPORTANT NEWS: National Electric Vehicle Sweden has agreed to buy the assets of Saab Automobile and the sale is expected to be finalized during the summer.

Wednesday, April 6, 2011

DI tells us how Saab wants to raise funds

Today Dagens Industri web edition tells us how Saab will refinance the EIB loans and get fresh cash into the business. A translation:

This is how Saab will raise billions
Automaker Saab needs to strengthen funds by SEK 1-2 billion, according to industry sources Dagen's Industri has been in contact with. The company wants to apply for new loans and get free from the shackles of the Government, Dagens Industry writes.

Russian banker Vladimir Antonov has contacted five major European banks to borrow SEK 3.6 billion. The money will help Saab to pay the loans from the European Investment Bank, EIB, which has a high interest rate, Daily industry writes.

- The EIB loan must be transfered over to loans that are not politically controlled. At the moment EIB and the Swedish National Debt Office have tied Saab's assets to the EIB loan, says Lars Carlström, advisor to Vladimir Antonov.

He stresses, however, that the process can take up to six months to complete.

Vladimir Antonov has previously promised to put up half a billion as soon as he is approved as the owner of the car manufacturer.

Saab also works to raise money by selling licenses and cooperation on the new platform Phoenix. Talks have been held with stakeholders including Chinese, says the company.

The problem is that money from such cooperations can not be access until after quite some time.

Saab's other assets, properties, tools and spare parts sales, are collateral that is tied up to the National Debt Office, which has estimated that the collateral will cover the SEK 3.6 billion borrowed.

Let's hope the Swedish Government can end this "wating game" sooner than later and let Antonov in.