Lotus signs financing deal with six banks
Developing cars is an expensive business. Proton learned this lesson themselves having spent RM 1 billion on the Waja, and this was year 2000 money. So, when Lotus unveiled five developmental models in last year’s Paris Motor Show, one of the burning questions at the time was how would they finance the enterprise of bringing these cars to production.
It would seem now that Lotus’ efforts will require the financial backing from the combined muscle of six institutions. Lotus today signed today signed an agreement for facilities amounting to £270 million extended by a syndicate made up by CIMB Bank, Malayan Banking Berhad, Overseas-Chinese Banking Corporation Limited, Export-Import Bank of Malaysia Berhad, Affin Bank Berhad and EON Bank Berhad.
This development comes quickly after Auto Express yesterday reported that Lotus’ application for a £27.5 million loan from the British Government’s Regional Growth Fund (RGF) was rejected by the Department for Business, Innovation and Skills (BIS). (Source: Lotus fails to secure Government investment – Auto Express)
Group Lotus Chief Executive Officer Dany Bahar said, “On behalf of Group Lotus, I would like to express our sincere appreciation to CIMB Group, Malayan Banking Berhad, Overseas Chinese Banking Corporation Limited, Export-Import Bank of Malaysia Berhad, Affin Bank Berhad and EON Bank Berhad for their support and, above all, confidence in
our future plans.”
“With the help of this external financing, we look forward to introducing our exciting new models to the world which will complement our current product range. I am confident that the execution of our business plan will mark the return of the iconic Lotus brand into the elite ranks of the world’s premium sportscar manufacturers and generate greater profitability and long-term financial sustainability for the company and its stakeholders”
