Polestar gets $950 million in financing from multiple banks

PolestarSwedish electric car brand, acquired $950 million in financing from a banking consortium to finance the next phase of its development and to cover a large part of the estimated financing needs (financial capacity on the balance as of December 31, 2023 reached approximately $770 million). Funding was provided by 12 leading international banks including BNP ParibasNatixis, Standard Chartered, BBVA, HSBC and SPDB, in the form of a three-year loan, it said in a statement.

The funding will be accompanied by an efficiency plan. Among other measures, 10% of jobs have been cut from mid-2023, followed by a further 15% this year. These are important steps to achieve the 2025 goals: the breakdown of the cash flow rate, the annual amount of more than 155,000 units and a very high level of output.

In addition to maxi financing, it is also new stock structure of Polestar recently announced to provide “a solid foundation for the further development of the brand’s business”, it is emphasized. With a new design, the Chinese Geely will become the second largest shareholder and Sweden’s Volvo Cars intends to retain an 18% stake. Volvo Cars said earlier this month that it would stop funding Polestar and last Friday announced that it plans to distribute 62.7% of its stake in the electric car maker to its shareholders.

“This is indicative a new phase in business of Polestar – it says Executive Director Thomas Ingenlath – The efforts of recent years are bearing fruit: we have improved our cost base, secured financing and are increasing the offensive of our products. Both SUVs now strengthen the brand, address one of the fastest growing segments in the industry and position us for significant volume growth and margin development from the second half of 2024.”

Polestar expects the increase in volume and margin to be transferred to the second half of 2024, when due to the SUV they will arrive full production and international distribution.