Geely-owned Polestar has announced a USD400 million equity investment by Feathertop Funding Limited, a special purpose vehicle consolidated to Sumitomo Mitsui Banking Corporation, and Standard Chartered Bank (Hong Kong) Limited – at USD 200 million each.
Concurrent with the purchase, the two financial institutions have each entered into a put option arrangement with a wholly-owned subsidiary of Geely Sweden Holdings AB, which provides the financial institutions with an exit path, if needed, in three years with certain returns, as part of this equity financing arrangement.
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Polestar said the terms are similar to the equity financing arrangements announced by the company in December 2025.
Michael Lohscheller, Polestar CEO, said: “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. With a record year of retail sales behind us, we are fully focused on creating a stronger Polestar.”
Following the closing of the transaction with Sumitomo Mitsui Banking Corporation and Standard Chartered Bank, neither financial institution will own more than 10% of Polestar’s outstanding equity. The price per Class A ADS to be purchased at the closing will be USD 19.34, which is the same price as in the equity financing in December. The financial institutions will not have any restrictions on the sale of the Class A ADSs they receive, subject to any applicable securities laws.
The transactions are expected to close by 5 February 2026 as no regulatory approvals are required.
BofA Securities is acting as Polestar’s exclusive financial advisor in connection with this transaction.
