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Saab plans to replace EIB loan to ease Antonov takeover: report

Saab Automobile has plans to replace a 2.2 billion kronor ($346.6 million) loan facility from the European Investment Bank (EIB), allowing Russian businessman Vladimir Antonov to step in as owner, according to a report in the Dagens Nyheter (DN) daily.

Saab plans to replace EIB loan to ease Antonov takeover: report

“When the new loan is ready, Antonov is prepared to come in and take a owner’s share of 29.5 percent,” said Antonov’s Swedish spokesperson Lars Carlström to DN.

EIB has put a halt on the Russian businessman’s ambitions to own Saab, but by paying back their loan to the investment bank the firm will be freed of their restrictions.

Reports about Saab’s plans are echoed by Svenåke Berglie, chairman of FKG, the trade association representing Scandinavian suppliers to the automotive industry.

“That is our impression. In the contract with EIB there are obstacles. Leaving EIB means that Antonov might be able to join without being approved,” he said to DN.

According to Carlström, Saab’s plan is to use their subsidiaries as collateral when securing a new loan.

“Saab’s spare and accessories company alone, Saab Parts, is worth 3.5-4 billion kronor. There’s a million Saab cars out on the roads that’ll be needing spare parts within the next 20 years,” said Carlström.

Eric Geers, Saab’s information director, told DN that Saab would like to have a more flexible solution than the EIB’s, but was otherwise unwilling to comment on reports that the company is planning to replace this loan with other financing.

Attempts made by The Local on Monday to contact Saab Automobile for confirmation of these reports were unsuccessful.

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ISLAM

Norwegian bank tests ‘Islamic loan’ concept

Norwegian bank Storebrand is offering new ‘halal loans’ based on Islamic principles.

Norwegian bank tests 'Islamic loan' concept
Storbrand's headquarters in Lysaker. Photo: Lise Åserud / NTB scanpix
The bank recently created a website promoting ‘ethical loans’ for home financing without interest. 
 
The bank writes that it is testing the idea of interest-free loans in part to appeal to Muslim home buyers who may not want to accept a traditional loan because of their faith. Islam prohibits charging interest or fees on financial loans. 
 
“We wanted to find out if there could be another way to enter a housing market with rising prices. The product could appeal to young people, new graduates or people who can not accept normal housing loans because of religious concerns,” the bank writes on a website that was set up to gauge interest in the idea. 
 
Within a week, around 300 people contacted the bank to express interest in the loans. 
 
“Storebrand is now currently evaluating the market potential for such a loan and considering what the product might look like. We have also been approached by financial advisers in the UK and Malaysia who want to help us to put together this type of loan,” the bank’s communication manager, Bjorn Erik Sættem, told Vårt Land. 
 
Although the bank says it is still merely testing the idea, its website states that instead of paying interest on a home loan the home buyers would pay rent on the property until they’ve paid in enough to achieve ownership. 
 
Sættem said that the bank has received “a handful” of negative reactions to what has been dubbed the ‘halal loan’, including some customers who have cut their ties with the bank.