Volvo Group enters into a SEK 6.2 billion loan agreement

Volvo Group enters into a SEK 6.2 billion loan agreement

Volvo Treasury AB (publ), a subsidiary in the Volvo Group, has successfully
entered into a SEK 6.2 bn (YEN 110 bn) cross-border syndicated loan agreement.
Volvo Treasury has decided to use syndicated lending in this case as a means of
diversifying its funding source.


“Japan is an important market for the Volvo Group and this transaction
demonstrates that the Volvo Group has established a long-term relationship with
several important financial institutions in Japan” says Anders Osberg, President
of Volvo Treasury. 

The syndicated loan was executed in the form of a “Ninja Loan”1, whereby several
Japanese financial institutions provide financing for the overseas borrower
Volvo Treasury. 

The transaction, which was handled by Mizuho Corporate Bank, Ltd, is the largest
Ninja Loan so far to a new international borrower in Japan in terms of both
volume and number of banks that participated.

1) A type of syndicated lending in which two or more domestic financial
institutions provide funding to non-Japanese corporate borrowers domiciled
overseas, from the Japanese banking market.

1. Type of Deal:	Syndicated Term Loan 
2. Total Facility Amount:	110 Billion yen
3. Signing Date:	July 11, 2008
4. Borrowing Date:	July 17, 2008
5. Final Maturity Date:	July 19, 2011 and July 17 2013, respectively between the
three and five year tranches
6. Interest Rates:	Variable Rate based on interbank offered rate
7. MLA & Bookrunner: Mizuho Corporate Bank, Ltd. 
8. Agent:	Mizuho Corporate Bank, Ltd.
9. Participating Lenders:	17 Japanese domestic financial institutions 

This information was published on July 11, 2008 at 09:00 CET

July 11, 2008

For reporters who want more information, please contact Christer Johansson, +46
31 66 13 34.

AB Volvo (publ) may be required to disclose the information provided herein
pursuant to the Securities Markets Act. The information was submitted for
publication at 09.00 a.m. July 11, 2008.



The Volvo Group is one of the world's leading manufacturers of trucks, buses and
construction equipment, drive systems for marine and industrial applications,
aerospace components and services. The Group also provides complete solutions
for financing and service. The Volvo Group, which employs about 100,000 people,
has production facilities in 19 countries and sells their products in more than
180 markets. Annual sales of the Volvo Group amount to about SEK 285 billion.
The Volvo Group is a publicly-held company headquartered in Göteborg, Sweden.
Volvo shares are listed on OMX Nordic Exchange Stockholm.