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Bonds News

Saab may not get full EIB loan - paper

 * $612 mln loan is key to Koenigsegg acquisition plans
 * Questions whether some projects fit EIB lending rules
 * Concerns remain over Koenigsegg's ability to buy Saab
 STOCKHOLM, Sept 29 (Reuters) - Ailing Swedish car firm
Saab, being sold by General Motors [GM.UL], may not get the
full 4.3 billion Swedish crown ($612 million) loan it has asked
for from the European Investment Bank (EIB), daily Dagens
Industri wrote on Tuesday, quoting an unnamed source.
 The loan is key to plans by luxury car maker
Koenigsegg to buy Saab, but the EIB is doubtful whether some of
the group's projects to develop environmentally friendly
technology are within its remit for lending.
 The EIB could lend Saab much less than the car maker wants,
the paper wrote.
 "There are questions about whether a number of development
projects fit with the EIB's rules for lending," the paper
quoted a source with insight into the process saying.
 Koenigsegg, backed by U.S. and Norwegian investors, struck
a preliminary acquisition deal earlier this year, but concerns
have continued to surface over whether it had the financial
muscle to buy and run Saab. [ID:nLI75238]
 Koenigsegg is in talks with Sweden to secure state
guarantees for the EIB loans.
 But Dagens Industri said that questions had also been
raised regarding the value of collateral that would be placed
with Sweden's Debt Office to secure a guarantee from the
government.
 "There is a discussion as to whether Saab's assets
shouldn't be valued at their worth in the event of insolvency
rather at market value," the source said.
 "In that case, the collateral would not be enough security
for a loan of 4.3 billion crowns."
 Koenigsegg Chief Executive and part owner Christian von
Koenigsegg told Reuters on Saturday there was good progress in
talks to secure the guarantees and the group aimed to finalise
Saab's acquisition by the end of October. [ID:nLQ720794]
 He played down a report that Koenigsegg could pull out of
the deal unless there was progress on securing loans by
Wednesday. [nLQ701376]
 This month, Koenigsegg said state-run Beijing Automotive
Industry Holdings would take a minority stake in the luxury
carmaker as part of its planned purchase, easing funding
worries. [ID:nL9222661]
 Swedish state secretary Joran Hagglund told Reuters on
Tuesday he hoped the EIB would decide on the loan on Oct. 21 or
the day after.




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