FILE PHOTO: An electric vehicle charging cable is seen on the bonnet of a Volvo hybrid car in this picture, figure 6 July 2017. REUTERS/Phil Noble/Illustration
STOCKHOLM (Reuters) – Volvo Cars has been increased from 600 million euro ($677 million) through a bond issue on Tuesday, the second this year and that is seven months after the Swedish carmaker shelved plans to list on the stock exchange.
Car manufacturers like Volvo are faced with rising costs for the development of electric and driverless cars, while they wrestle with the consequences of trade wars and a decline of the industry.
Volvo said on Tuesday that the bond would expire in April 2024, pay a fixed coupon of 2.125% and an issue price was 99.625, good for a yield of 2.205 percent, and a Euro mid-swaps plus 215 basis points.
The settlement, expected in April, 2 April, and the bonds are listed on the Luxembourg stock exchange, Volvo said.
A spokeswoman from Volvo, which is owned by chinese Geely, said the money raised would be used for business purposes.
In November, Volvo CEO Hakan Samuelsson had ruled out a bond issue in the short term due to turbulent markets.
Reporting by Esha Vaish in Stockholm. Editing by Jane Merriman