Last year, about 3pc of Volvo's net sales stemmed from Russia with the provision related to expected credit losses among customers there. Volvo has total assets worth about 9 billion kronor related to Russia, of which 6 billion kronor are classified as cash items, the company said, which are related to its leasing business that is financed through the bond market. Volvo is taking a hit as vehicle manufacturers broadly retreat from Russia following its invasion of Ukraine. Volvo is among the biggest issuers of corporate bonds in Sweden and currently has about 107.6 billion kronor of notes outstanding, according to data compiled by Bloomberg. Analysts at Danske Bank said in a note that the impairment is slightly credit negative.

Source: Irish Independent April 08, 2022 17:27 UTC