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.”
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.”
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.
“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.