Report: Confidence growing on EIB loan for Saab

Sweden’s E24 news service is citing one of those mysterious people-with-knowledge-but-no-name as saying that the EIB seem satisfied with Saab’s business plan, and that the loan will most likely be recommended.

The GoogleTrans (unedited):

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Saab-business one step closer

The management team of the European Investment Bank, EIB, yesterday went through the base of Saab buyers’ request, to determine if it has come to be treated at the Board meeting on 21 October.

So stated Joran Hagglund, state secretary and government chief negotiator in the deal.

Yesterday’s meeting of the management team was thus crucial to Saab, it may be important loan of 4.3 billion kronor.

A source familiar with the process, which has seen the business plan, is confident that the loan is granted.

-The business plan is realistic and it is clear that we want to give it another chance. If the business plan would not be realistic one would not have gone this far with the plans.

According to SvD Enterprise’s source is the acquirer, Koenigsegg Group, was serious from the beginning of an ambition to buy Saab. Meanwhile, the government and the Bank share the same interests, which suggests that there will be a loan. For government, it is about relatively little money to guarantee, consider the source.

According to Joran Hagglund, however, the results of yesterday’s meeting to be either positive or negative.

“It may be that they say “yes, it is clear there is a given space.” Or “no, we estimate that there will be no loan” or they say it is a small loan, he said yesterday, while the EIB’s meeting was in progress.

Joran Hagglund said that the bank has been in place in Trollhättan, and gone through all the prospectuses plans for projects. Yesterday was the Bank’s Executive Board, an analysis of the material.

So now everything is settled?

– Yes it can be said. Ultimately, the EIB Board of Directors who then takes the decision. But the management team’s assessment is of course completely indicative of how the EIB Board will deal with it,” said Joran Hagglund.

He stressed that the government come in later in the process and will decide whether it can provide guarantees, which are also necessary for the loan.

“We make our assessment after we know how large a loan Saab. So we are very interested in knowing the outcome.

But Koenigsegg Group CEO Christian von Koenigsegg puts little emphasis on yesterday’s meeting.

He focuses on the crucial date on October 21, when the Board at the earliest, taking a final decision about the coveted loan.

-The information we have is that they will take a decision in late October, then it is a lot of steps until then. The EIB has certainly a lot of meetings, but we are not interfering in their internal process. But above all, we are not there and we are not included in the discussions, I’m home,” he said, referring to yesterday’s media reports that Koenigsegg Group would sit in the meeting with the EIB.

Joran Hagglund suggest that the loan may also be smaller. What do you do if the loan is less than you expected?

“We live in a changing world and we adapt to the situation which is at the moment,” he says, but points out that he yesterday received the indications.

He calls it rather speculative.

EIB page is the cover on. Per Jederfors is the director of lending within the credit department.

“I can not comment on whether there has been no meeting.

Although Eva Srejber, Vice President of the EIB, is very secretive, but denies that the management team talked about Saab during yesterday’s meeting.

“We are working on the issue and it may come up at several meetings. But yesterday, we discussed not Saab.

Although there are only three weeks until the decision is taken, is Saab’s future remains very uncertain. But just as SvD Enterprise’s source believes Lars-Göran Jönsson, President of Saab dealers Swedish car, the loan will be granted.

“We have received indications from Saab’s leadership and Jan Åke Jonsson that there will be a loan. We have ongoing contact with management and now we are expecting. Although Königsegg Group must correct the data and content in the business plan that does not mean that it is unsustainable,” he says.

About the EIB loan process….

The next all-important step for Saab and the Koenigsegg Group (well, if you don’t count convincing the government you’re for real) is the application process for the $600m they’re after in loans from the European Investment Bank.
Whilst many consider this a fait accompli as long as the government’s on board with a guarantee, the EIB would like you to think otherwise.
This article on Saab and the EIB comes from E24. JV was kid enough to provide a translation for us, reproduced below:
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Saab must squeeze through a needle’s eye
“We don’t have lower requirements than a normal bank. Historically, it’s rather been the other way around”, says Eva Srejber, vice president of the EIB, which will evaluate Saab’s application for a loan of over 4 billions [SEK].
Yesterday, the investors behind Koenigsegg Group sent in information to the EIB about what the new Saab could look like after an acquisition.
Among other things, the information contains an income statement, balance sheet, new financial plan, predictions of future incomes and a stress test.
This is the same information that was presented to, among others, the [Swedish] governments representative Jöran Hägglund during yesterday’s meeting with the Koenigsegg consortium. Since for the EIB to grant the loan, it’s required that the [Swedish] government will step in as a guarantor.
But it’s not an extra nice bank that will to handle the loan application to finance research and development projects aiming to develop more environmentally friendly cars.
– We want our money back and we don’t have lower requirements than a normal bank. Historically, it’s rather been the other way around. That a company gets a loan granted by us has rather been seen as a quality seal by other banks, says Eva Srejber, vice president of the EIB, who will be present during the assesment of the loan application.
And now the more or less secret investors behind Koenigsegg Group will be scrutinized.
– Of course we’ll go through everything very carefully. It’s the company itself that must have a long term survivability. We in the EIB management, and the bank’s board of directors, must think it’s probable that the company can repay the loan, says Eva Srejber.
The EIB has it’s own transport economists that will review the application from an economical and financial perspective.
– Among other things, we weigh the strength of the balance sheet, predictions of future incomes, and possible securities and guarantees. We have political goals, but within these political goals we work just like any other bank.
But if the [Swedish] government / the Swedish National Debt Office decides to guarantee the loan, then it’s no doubt about you granting it?
– The management of the EIB will always make it’s own assessment. But the bank is owned by the 27 EU countries and representatives for the countries’ governments is in the board of directors. It’s unlikely that the Swedish National Debt Office and the EIB will reach different conclusions. Both have an interest in the loan being repaid.
How strict is the assessment regarding which projects you approve?
It can be a number of things that makes a car more environmentally friendly. It can be the tires, the weight or the shape of the car or the entire drive train, the engine or the type of fuel. We can also finance development projects to research cars that are safer, to reduce the number of accidents.
But certainly, all research is about developing safer and more environmentally friendly cars. It sounds like you could consider supporting all research at a automotive company?
– You are right that most automotive companies are doing research towards less environmental impact. And this is because there are future requirements that the cars must fulfill. It’s our engineers that will evaluate which projects that we can approve, says Eva Srejber.
But even if the EIB will grant the loan application, the financial problems won’t be solved for Koenigsegg Group.
The company can only finance half of the project costs with loan from the EIB.
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The sound like pushovers to me. If the government’s in, they’re in. It’s a no-lose situation for them once the guarantee is in place.
My thanks to Jakob for the translation!

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