(Bloomberg) -- Chinese billionaire Li Shufu’s Zhejiang Geely Holding Group Co. is in talks with banks for a syndicated loan to refinance borrowings related to its acquisition of a stake in Volvo AB in 2018, according to people familiar with the matter.

The facility could be for more than €2 billion ($2.2 billion) and launched into syndication as early as this month, said the people, who asked not to be identified because the matter is private.

The loan discussion comes as the automaker, one of China’s biggest, accelerates its shift toward a more upscale product portfolio, seeking to boost profitability as it ramps up efforts to compete with local peers in electric vehicles. 

Geely became a major holder of Volvo AB, a Swedish manufacturer of trucks, buses and construction equipment, six years ago after buying a 100% stake in Volvo Car AB in 2010 from Ford Motor Co., further expanding its international presence. 

Geely has lowered its stake in Volvo AB this year. It sold $1.3 billion of the truckmaker’s shares in April, though it remained as the second-largest shareholder.

A handful of international banks are expected to lead the financing, which hasn’t been finalized and could change as negotiations continue, the people added.

Geely declined to comment on internal business matters, in an emailed statement to Bloomberg.

--With assistance from Danny Lee.

(Updates with background about Volvo AB in fourth paragraph.)

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