17 Sep 2020
EUR 24.77 million
Financial institutions and SMEs
|Date of agreement:||29 Apr 2016|
|Customer:||Volvofinans Bank AB (publ)|
|Amount in SEK:||SEK 350 million|
|Amount in EUR:||EUR 38.1 million|
|NACE sector / loan type:||Loan programme|
|Business area:||Financial institutions and SMEs|
The loan programme has been provided for onlending to small and medium-sized enterprises and small mid-cap companies in Sweden to finance their purchases of commercial vehicles.
Volvofinans Bank was established in 1959 with the primary task of supporting the sales of associated car and truck dealers in the Swedish market. About 70% of Volvofinans Bank’s lending volume originates from car and truck sales financing.
The project is expected to improve SMEs’ and small mid-cap companies’ access to financing for the purpose of acquiring trucks, busses and trailers. The use of modern transport vehicles will support the growth of productivity among member area companies.
The scope of the loan programme is limited to financing purchases of commercial vehicles, like trucks, trailers, buses and vans, through Volvofinans's associated dealers and is not expected to have a significant impact on the environment. The heavy vehicle sector applies the selective catalytic reaction method, based on the injection of urea in the catalyst, in order to meet current and future emission requirements for nitrogen oxides. It implies a lack of incentive to use the “cycle beating” systems sometimes applied in cars. Investments to be financed through a financial intermediary must fulfil the sustainability requirements defined in NIB’s Sustainability Policy and Guidelines.