The China Development Bank agreed to provide Volvo Car Corp. with a 922 million euro loan (7.6 billion yuan) to help it refinance its current loans.

The loan, which will mature in 2020, is part of a lending agreement that Volvo signed with the state-owned bank earlier this year, the Swedish carmaker said in a statement.

It needs to pay off loans totaling 600 million euros in the next few years, according to Volvo. Volvo was acquired by private Chinese automaker Zhejiang Geely Group Holding Co. from FordMotor Co. in 2010.

It sold 35,785 vehicles in China in the first ten months of this year, up 12 percent year-on-year.Volvo plans to establish a joint venture with its Chinese parent to build two assembly plants in China.