Saab Granted Additional Payments of EIB Loan by Sweden’s NDO

The Swedish National Debt Office guaranteed additional loans for Saab.

The NDO on Thursday granted additional guarantees for EIB loans for Saab. Within two weeks, the company may have more money in their accounts.

Note that this money is part of the EIB loan facility that Saab has been using since restarting operations last year and is used exclusively for special environmental development projects. As Marja Long said, “We are not worried.”

___________________

UPDATE:

In an interview with Dow Jones, according to Victor Muller, there’s no need for additional approvals:

According to Muller, this is nonsense. “I don’t know what they are talking about,” he said, adding Saab can draw up to EUR400 million from the facility without additional approvals. “So far, we’ve drawn EUR260 million from the facility.”

From di.se:

Saab filed on Wednesday night at the Debt Office to receive an additional payment from the European Investment Bank (EIB), reported Göteborgs-Posten newspaper.

Saab has so far received about two billion in loans that the Swedish state is the guarantor for. There are approximately 1.6 billion of the loan.

For each payment required, the National Debt Office clears the state guarantee.

The Debt Office decided to say yes quickly.

“We will grant the application. It is already clear, even if not all documents are signed,” says the Debt Office Communications Marja Long to TT on Thursday.

Has the turmoil of recent days with reports that suppliers were not paid impact your position?
“We are not worried. We have security for the loan of 400 million and this payment is not close to reaching the roof,” said Marja Long.

“The money from the EIB may only be set aside for special development projects and are closely followed up. We must distinguish between long and short of money.”

Typically, the EIB around two weeks before the money paid to the Saab. Exactly how much it moves about in this installment does not want the National Debt Office said.The last payment made in January was 32 million euros (about 285 million dollars), according to Spyker Cars accounts.

 

From gp.se

“They arrived last night in with a request to borrow more money and we have today bevlijat guarantee it,”said Marja Long on National Debt Office.

It’s about additional loans beyond the 217 million euros, which the EIB already paid and the Swedish government provided guarantees.” They’re not disclosing how much.

“But we will not address the maximum amount.”

Overall, Saab under the agreement is allowed to borrow up to 400 million (if they’ve already borrowed 217, they have 183 million euros left).

 

A first step to get more loans under the Debt Office is to accept more guarantees.

“It is paid in shares and as they pick up new projects applying for those on more money. When viewing both we and the Investment Bank on the project and make an assessment. And we guarantee payment so pay Bank the money, “said Long.

Under the loan agreement, the Debt Office handles an application for more loans within three days.

“If we give guarantees the EIB usually takes two weeks to pay out money, but it is possible that they can do it faster. They turn it out and borrow money in the market, “said Marja Long.

 

Saab will not admit to borrowing more money, but describe an application that you only use that 400 million loan has already been agreed on.

“We have not asked for more money… We’re not done with this. We have not asked for more. We have agreed that we will have 400 million. There is a plan behind this, so there is nothing strange about it,” said Eric Geers, spokeswoman for Saab Automobile

Requests for further EIB money comes just months after Saab’s chairman Victor Muller said he contacted the banks to try to resolve the already existing EIB loans, for Saab to be independent of the Swedish state.

“There is an ownership issue, and I can’t comment on it,””said Geers.

What is the project about which you are now requesting loans for?

“I can’t make a comment about the project. It’s something between us and the Debt Office.”

But with the new loan will be after all more money into Saab’s cash?

“Not more money. We have a plan and every quarter we make a drawing of what you expect.”

Right now it seems Saab is having a hard time with their suppliers. Is this an application unrelated to it?

“No, no, no. As we said earlier, we shall agree on payment and delivery terms. As we did with Schenker and now rolls deliveries as usual.

Do you agree with all who had the same problem as Schenker?

“We have a number (of suppliers) which we will are speaking with right now, and there is no reason to believe that there isn’t solution. Production rolls and it is very important,” said Eric Geers.

 

On Tuesday evening, the Debt Office also made a request from the Convers Group to the Russian banker Vladimir Antonov to become part owner of Saab.

Saab Chairman Muller commented Wednesday on the application that “We have made a formal request to allow him (Antonov) to come back.”

The Debt Office confirmed Muller’s comments without commenting on the contents of the letter from Antonov company Convers Group.

 

Marja Long describes, however, how any such application would be handled at the Debt Office:

“Because of (their application) we made the agreement to guarantee loans to the Bank using a variety of legal documents. Among other things, there is a “change of control” clause, which says that any changes in ownership will be reflected by a change in the contract.

And all contract changes must be approved formally by the government.

“So we are looking at the issues that may arise. Then we’ll provide a proposal to the Government, which decides to do as we suggested, or not.”

_______________

As has been said, Saab is making a simple request to access money that has already been granted to them. What is clear is that Saab has a very large portion of the EIB loan left to use even without tapping into additional share issuances or external investments from Vladimir Antonov. There’s a lot of work to be done, and Saab management is working overtime to make sure production rolls along smoothly.

TuuSaR
Guest
TuuSaR
5 years 5 months ago

But that is normal money that Saab gets time to time and like the story says and everybody here knows, it can be used only for certain engineering and research programs.

rodmylon
Guest
rodmylon
5 years 5 months ago

This story about the EIB loan, without the interview of Geers, is run in di.se and e24.se. They make it sound like Saab has requested additional loans over the 400 million they were granted. That is wrong. This is just a planned withdrawal of the already granted loan, that is being payed in installments. Now the media is out hunting for bad news, and this time they describe it in the wrong way! No news here!

rodmylon
Guest
rodmylon
5 years 5 months ago

di.se made a correction of their article. Now it gives a (very brief) more correct view of the situation

Börjesson
Guest
Börjesson
5 years 5 months ago

When you post a translated news story from off the web like this, then please also include a link to the source! For those who happen to be fluent in the language, the original is much easier to read than a ghastly googletrans.

ivo 71
Guest
ivo 71
5 years 5 months ago

The link can be found in the following thread (IAC…) in comments.

Ivo

Daniel
Guest
Daniel
5 years 5 months ago

For all negative wrriting,
are we all forgeting so soon what VM did for Saab? He was in far more serious problem to convince GM not to close Saab but to sell him. Now I can see all kind of mud some are throwing. DO NOT FORGET WITHOUT VM THERE WILL NOT BE SAAB.
Let gives him some trust and make support and not doom crying. He do not need that we act behind his back we should show him that Saab community is 100% behind him.

JasonPowell
Member
5 years 5 months ago
Totally agree Daniel. The same can be said for VA as well. Anyone who watched the sale of Saab go down will know he was pretty instrumental to getting it done as well as VM. Too question his motives or to say ” I don’t trust him” or anything in that nature would be unfair. I know he is a little loose at the lips, but I think his motives are right and even when he says something that makes you shake your head, you can’t help but respect his honesty. WITHOUT BOTH OF THEM THERE WOULD BE NO SAAB.… Read more »
saab93f
Guest
saab93f
5 years 5 months ago

Daniel +1

We have not had any reason to be anything but thankful and proud of Mr Muller. He came to rescue when most had lost hope – how can anyone be so thick as to think that he´d have anything but Saabs viable long life prosperity on his mind.

Unfortunate events but nothing more – mountain out of molehill, methinks!!

RGSU
Member
5 years 5 months ago

Although some of the recent setbacks are discouraging, I agree that there seems to have been an overreaction on the site (and obviously, the media). Lets get some more facts.

Swade, although I absolutely respect you private/family time and need for some privacy, an editorial from you would be very helpful. Your views carry well earned weight and respect around here and could serve as a calming influence. ( By saying this I mean absolutely no disrepect to the new crew – you have all done an amazing job at a challenging time!!)

carlo
Member
5 years 5 months ago

I found this news on Automotive News. I am not sure if this is the right place to post this, but we are talking about NDO….

http://www.autonews.com/apps/pbcs.dll/article?AID=/20110331/ANE/303319838/1496

rodmylon
Member
5 years 5 months ago
I want to clear something up here, and I want everybody to reflect on this and spread it on when, in particular the Swedish, press and commenters question the GUARANTIES Saab have left for Riksgälden to get the EIB loan of 400 million euros. These facts have been mentioned, but never really brought forward in a strong and clear way in the press. However they are clearly mentioned in Jonas Fröberg’s book “Kampen om Saab”. Jonas is an business/economics and car industry journalist at Svenska Dagbladet (svd.se) and has been critical of Saab, but I’d say he is one of… Read more »
RGSU
Member
5 years 5 months ago

Perhaps I didn’t apprecite the difficult situation an editorial would place Swade in – so I retract my previous hope for a formal editorial. If he does read this and feels comfortable commenting, I’m sure we would all welcome whatever views and thoughts he has on the current issues at hand.

paddan
Member
5 years 5 months ago

Maybe I am missing something here, but I can’t imagine that if Saab were in such financial straits, as certain professors, journalists, naysayers and other varied trolls are claiming, that any further EIB loans would issue or whether the State would guarantee such additional loans. Am I wrong? If so, how?

ivo 71
Member
5 years 5 months ago

No, you are not. As explained in post 23, any repayment obligations by the Swedish state are more than adequately covered by Saab sureties and assets.

Ivo

ivo 71
Member
5 years 5 months ago
The whole EIB-issue may well become academic soon. Apparently, VM is negotiating the re-financing of the EIB loan with a number of banks. Apparently, the sum concerned could be around 500 million euro’s. Googletrans of news item by Dutch TV news station RTL-Z, apparently based on an interview VM gave Dow Jones Newswires earlier today: Spyker CEO: in talks with banks for large loans Spyker Cars is in talks with several banks for a large loan, which will be used to blame the European Investment Bank (EIB) to repay. Saab This confirms CEO Victor Muller told Dow Jones Newswires Thursday.… Read more »
GerritN
Member
5 years 5 months ago
Imho, the only reason to pay off the EIB loan would be to get rid of all the red tape involved when getting installments and probably also the progress reporting on how the money is being spend. We’re in a similar situation with our Department of Energy funded projects. It is very difficult to stick to our well thought through technical driven schedules because it is so extremely difficult to jump through all the hoops that DOE is throwing up before they actually transfer the agreed upon money to our accounts. The EIB is essentially a bank directly controlled by… Read more »
Red J
Member
5 years 5 months ago

+5 beans

JasonPowell
Member
5 years 5 months ago

Totally agree with you here GerritN

Sven van Dijkman
Member
5 years 5 months ago

Good old VM saying: “Our goal is to eventually repay the Bank,” “Only then Saab is truly independent.”

Independent, yes in a way. Except from the new financial muscle behind this. And that is who?

Real independence is when Saab car buyers finance all of the company!

Bravada from GMI
Member
5 years 5 months ago

Not really, no business in the world is being financed out of equity alone, or at least shouldn’t be, that’s not the optimum way. Saab needs commercial financing on reasonable terms without too many strings attached.

sonett71
Member
5 years 5 months ago
I love Saab and will forever drive Saab, but I am worried for the people on ANA and other companies who try to sell new Saab cars. After three days with all bad news, swedish people will not buy Saab for the next 6 months. They will wait and see what happen. The year 2011 is lost for Saab in Sweden, but I hope on a very strong 2012. The CARS is great but peole in Sweden can only see Saab Automobile like a weird company. Also workers at Saab in Trollättan comment very bad about Saab Automobile in E24… Read more »
Knape
Member
5 years 5 months ago
I am very disapointed! I love SAAB and I can’t stand to see them spoil this opertunity to create a beautiful company that has a great history. My faith are not gone, I still belive, but when they not pay their supliers the faith and trust from other byers might faid away! They can’t mess with anything right now, everything has to work out smothly. They don’t need this kind of publicity! They have the mony, why not pay? I guess that the new payment system might be one of the reasons but they can’t talk this away. I hope… Read more »
SAAB_Andee
Member
5 years 5 months ago
Starting a business from zero (which i would call starting after the wind down) with a breakeven mentioned in 2012 isn´t even easy. also there are to pair of shoes to pay bills. there is a big difference if you don´t want to pay a bill (reasons could be whatever) or you don´t be able to pay the bill. after the 2010 numbers all suppliers went a little bit crazy ( a typical SU reader would know the numbers since jan 2011 and that there would be a loss is no surprise) i work in the construction business and it… Read more »
JasonPowell
Member
5 years 5 months ago
It’s funny, GM received 57 billion or so in bailout loans from the US government, shuttered dealers and brands and doesn’t receive the same kind of abuse that SAAB does. Sure, GM is in a better situation now, but if they didn’t get the bailout package they got and couldn’t afford to advertise like they do or have the programs they do, do you honestly think they would be doing so well? If Saab needs more money, what’s the harm in that? They are re-starting a company from the ground up and we all seem to be overlooking a lot… Read more »
SAAB_Andee
Member
5 years 5 months ago

1+ that´s the point

and don´t forget the typical SU read want´s everything … more HP , halo cars, more advertising, lower msrp … DO we want SAAB to survive ?

SAAB has to manage their money very well this time. they can´t make experiments.

JasonPowell
Member
5 years 5 months ago
I don’t disagree at all and I think in fairness, they have managed their money very well and I know some people will probably disagree. I am one of those that would like to see more advertising and I think this could be done if you let an investor in who wants to get things done. You have to remember to that some of the great things already done will start to see a payoff in the next six to twelve months and unless I’m having a mental lapse, Saab wasn’t shooting to be profitable in 2011 were they? That… Read more »
Romac
Member
5 years 5 months ago
Agreed. SAAB is a commercial business. We may sit here biting our nails and spitting feathers, offering advice to “the referrees” and “the managers” like parents watching their kids play football, desperate for them to do well, but we can never know the whole picture. Cash flow is a big problem, especially in a recession, and many companies are having to drip feed money to suppliers, because that’s how they receive it. It’s a real juggling act. JIT aids cash flow by avoiding big inventories, but has it’s own issues as we have seen this week. Let’s keep the products… Read more »
zippy
Member
5 years 5 months ago
Why is the Swedish media making a big deal out of this?! The EIB money is Saab’s is it not? I realise the Swedish government has to authorise the payments to Saab as role of guarantor but why does the media have to tie all his in with the current issue Saab has already dealt with? As Jason has already pointed out we should look at Saab’s accomplishments over the past year as an indication at what Saab is capable of. I have to admit I am guilty at times of thinking things aren’t happening fast enough. Yes there are… Read more »
Romac
Member
5 years 5 months ago

…or park it in a shopping mall?
(and offer test-drives up to whistler 😉 )

wpDiscuz