Proton to get RM1.88 bil financing from China Construction Bank

(FMT) – National carmaker Proton has secured RM1.88 billion in banking facilities from China Construction Bank to fund expansion around the region.

The loans are earmarked for Proton’s growth plans to be the number one automotive brand in Malaysia and number three in Asean by 2027, the company said in a statement late last night.

“Expansion to foreign markets is critical for sales growth while obtaining financing allows the company to invest in the many projects required to turn Proton into a truly global automotive brand,” Proton chairman Syed Faisal Albar said in the statement.

In August last year, Zhejiang Geely Holding Group Co Ltd, which owns 49.9% of Proton, had agreed to extend its partnership with the carmaker to upgrade its line-up of cars and help expand Proton’s presence in China and other international markets.

Proton said it also exchanged documents with Pakistan’s Alhaj Automobile in Beijing, where Prime Minister Dr Mahathir Mohamad is attending the Belt and Road Forum.

Proton signed a licensing and technical assistance agreement with Alhaj to build a manufacturing plant in Karachi with an initial investment of US$30 million (RM124 million) to assemble and distribute Proton cars for the Pakistani market.