Swedish automotive manufacturer Polestar has secured a $300m equity injection aimed at shoring up its liquidity and capital structure.
The funding came alongside a separate debt-for-equity move by shareholder Geely Sweden Holdings.
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The equity investment is being provided in equal tranches of $150m by Banco Bilbao Vizcaya Argentaria (BBVA) and Natixis.
In conjunction with their investment, both banks have reached put option deals with a wholly owned subsidiary of Geely Sweden Holdings.
These options give the institutions the right to exit the position after three years, subject to defined return terms under the financing structure.
In a separate step, Geely Sweden Holdings has reached an agreement with the carmaker to swap roughly $300m of unpaid principal and accumulated interest for shares.
The liabilities arise from a term facility agreement that was put in place on 8 November 2023.
The conversion remains subject to any required regulatory clearances.
Polestar CEO Michael Lohscheller said: “These transactions significantly enhance our liquidity position and help strengthen our balance sheet.
“We are grateful for the continued support shown by Geely Holding and their confidence in Polestar’s vision.”
Polestar said that, on completion of the deals, no individual financial institution participating in the equity raise will hold more than 10% of the company’s issued share capital.
The purchase price for the Class A American Depositary Shares (ADSs) to be issued at closing has been set at $19.34 per ADS.
The amount is calculated from the average trading price over the preceding three months, weighted by volume, prior to the signing of the definitive agreements, and then adjusted upward to the next cent.
The Class A ADSs received by BBVA and Natixis will be freely tradable, subject to securities law requirements, with no contractual lock‑up specified.
The company anticipates the transactions with the financial institutions to close by 23 December 2025, noting that these steps do not require regulatory approvals.
BofA Securities is serving as exclusive financial adviser to Polestar on the equity transaction.
The funding moves follow Polestar’s recent results for the nine months to 30 September 2025, when the company posted revenue of $2.17bn, compared with $1.45bn in the same period a year earlier.
It reported a net loss of $1.55bn, widening from $867m year-on-year.
Announcing the results in November, Lohscheller said: “As market conditions remain challenging, we continue to take steps to make our organisation and operations more efficient.”
