BMW to Lend $20 Million to Kolon

BMW will lend 20 million dollars to Kolon, a local sales agent of BMW in Korea, with a very low interest rate of Libor plus 0.25%. Korean companies usually borrow money at Libor plus 2.5%.
BMW did not attach any conditions for the financial support. Kolon will use the fund to repay foreign debts unrelated to its car business.
Mr. Engel, the chairman of BMW Korea said, 'This is the first time that we have provided support at this low interest rate, in Germany as well as in Korea. We decided to support Kolon, whom we have enjoyed an excellent relationship with for 15 years, because of the difficulties it has faced since the IMF bailout.'
Last March, Kolon proposed the deal with BMW.
Kim Hong Ki, the chairman of Kolon said, 'BMW positively evaluated KOLON's 40 billion won investment in building our sales network.'