Swedish luxury electric vehicle (EV) maker Polestar has secured a $950-million three-year syndicated loan facility from 12 international banks, as the firm eyes cashflow breakeven next year, according to a company release on Wednesday.
The syndicate of global banks that joined the debt financing round include BNP Paribas, Natixis, Standard Chartered, BBVA, HSBC, and SPDB. The funding will finance Polestar for its next stage of development as well as cover a large majority of its financing needs.
Polestar delivered around 54,600 vehicles globally in 2023, which fell short of its target of 60,000-70,000. In another whammy, the EV maker is planning 15% job cuts this year, after laying off 10% employees since mid-2023.
The news comes shortly after Sweden-listed Volvo Cars said on February 23 that it would cease to provide further funding to Polestar. Volvo intends to distribute 62.7% of its stake at Polestar to shareholders which would bring down its ownership in the firm from around 48% to 18%. Geely Sweden Holdings will become the second-largest shareholder at Polestar under the new structure.
“As a strategic partner and direct shareholder in Polestar, Geely will continue to provide full operational and financial support to the iconic performance car brand going forward. We will retain our shares in Polestar and intend to participate in future financing activities when required. Polestar will have full access to technologies and engineering expertise from Geely Holding to realise its global growth targets,” Daniel Li, Geely Holding Group CEO and Polestar board member, said in the release.
Going forward, Polestar eyes volume growth and margin progression particularly in the second half of 2024, as the firm’s two new SUVs hit full production and global distribution.