Polestar secures $400m from institutional investors
Sumitomo Mitsui-linked vehicle and Standard Chartered back EV maker with three-year exit option
Polestar, the electric vehicle manufacturer backed by Volvo and Geely, has raised $400 million in new equity financing from two institutional investors, as it seeks to bolster liquidity and reinforce its balance sheet.
Feathertop Funding, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) each subscribed for $200 million, the company said in a statement.
The investors have entered into put option agreements with a wholly owned subsidiary of Geely Sweden Holdings that allow for an exit in three years with defined returns.
Polestar said the price per Class A American depositary share at closing will be $19.34, matching the terms of a previous equity round in December.
The company noted that neither institution will hold more than 10% of its outstanding equity following completion, and that the shares will be freely tradable subject to securities laws.
The transaction is expected to close by 5 February, with no regulatory approvals required. BofA Securities is acting as Polestar’s exclusive financial adviser.
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“Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet,” said Michael Lohscheller, Polestar’s chief executive.
“With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
The Recap
- Polestar secures USD 400 million equity investment from two banks.
- Each institution invested USD 200 million with put options.
- Transaction expected to close by 5 February with no approvals.
