Sweden. Volvofinans Bank AB (publ)
| Date of agreement: | 07 Oct 2022 |
|---|---|
| Country: | Sweden |
| Customer: | Volvofinans Bank AB (publ) |
| Amount in SEK: | SEK 500 million |
| Amount in EUR: | EUR 47.64 million |
| Maturity: | 7 years |
| NACE sector / loan type: | Loan programme |
This loan contributes to climate change mitigation: 30%
Project
The loan has been provided for Volvofinans Bank to provide competitive on-lending, instalment purchase and leasing solutions for trucks and qualifying hybrid cars used by small and medium sized enterprises, as well as for small mid-caps, in Sweden. At least 30 % of this loan will be used for SMEs’ purchases of hybrid vehicles.
Volvofinans Bank is a borrower of NIB with two loans for on-lending to SMEs signed in 2016 and 2017. In 2020, NIB also participated in a green bond issued by the Borrower.
Volvofinans Bank was founded in 1959 and is 50% owned by the Swedish Volvo and Renault dealers via the holding company AB Volverkinvest and 50% by Volvo Personvagnar AB. The business is primarily to support the sale of Volvo’s and dealers’ vehicles on the Swedish market.
Fulfilment of NIB's mandate
The project may improve SME’s and small mid-cap companies’ access to financing when acquiring or leasing primarily new trucks or hybrid cars. Given that SMEs and small mid-caps are responsible for a considerable share in aggregate output and employment, the loan programme might alleviate credit constrains, which have been identified as a comparative disadvantage for SMEs, and thereby contribute to increased productivity and efficiency of the market.
At least 30 % of this loan will be used for SMEs’ purchases of hybrid vehicles.
Sustainability summary
No concerns identified.
