Volvo refinances to the tune of SK5 billion ($53.3 million) in a bid to keep on track its plans for electrified powertrains and autonomous technology.
The Swedish automaker owned by Chinese parent Geely has issued convertible preference shares to a group of institutional investors comprising Swedish pension fund AMF and Swedish insurance and pension savings group Folksam. These shares can be repurchased or converted into common shares of Volvo Car AB.
While no further details on the terms of sale are being disclosed, the automaker says proceeds from the shares will be used to refinance the existing same amount of preference shares issued in December 2016.
Volvo used the announcement to claim a strong demand for its range of SUVs among other models increasing market share despite stagnating global car markets. Earlier this year, it launched its first fully electric car, the XC40 Recharge, and pledges to launch a fully electric car every year over the next five years. It also claims to be the only automaker to offer one or more plug-in hybrid variants of every model in its portfolio.
By 2025, Volvo expects half of its global sales volume to consist of fully electric cars, with the rest hybrids.