Lotus Secures RM1.33Bil Loan Deal To Finance Future Plans

Lotus, a wholly-owned subsidiary of Proton, has secured £270 million (RM 1.33 billion) in financing—part of the £480 million (RM 2.36 billion) five-year transformation plan embarked on by the British sports car manufacturer. Signed at the Proton Centre of Excellence Complex in Shah Alam, the syndicated loan agreement involves six lenders: CIMB Group, Malayan Banking Berhad, Overseas Chinese Banking Corporation Limited, Export-Import Bank of Malaysia Berhad, Affin Bank Berhad and EON Bank Berhad.

“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”, Lotus CEO Dany Bahar said at the signing of the agreement. “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 sports car manufacturers, and generate greater profitability and long-term financial sustainability for the company and its stakeholders”.

With this external funding, along with Lotus' internal funding, Proton believes Lotus has all of the £480 million it needs to upgrade its manufacturing facility in Norwich, England and roll out the five all-new Lotus supercars set to take on rivals from the likes of Aston Martin and Porsche. The Lotus Esprit, the first of the five to arrive in the second quarter of 2013, has so far attracted 3700 bookings, making up a significant portion of the 6500–7000 annual combined sales figure targeted for all five models.