Yahoo Finance Northvolt secures £3.95bn debt round as listing anticipation builds
Swedish lithium-ion battery producer Northvolt has completed one of the largest green loan raises in European start-up history as its treads the path to IPO.
The company today said it has raised $5bn (£3.96bn), including the refinancing of a $1.6bn (£1.27) debt package raised in 2020, is provided by a 23-strong banking conglomerate including BNP Paribas, Citigroup and JP Morgan.
Reuters reports that Northvolt has now secured more than $13bn (£10.28bn) in equity and debt to expand its operations across Sweden, Poland, Germany, the United States and Canada.
The Swedish company has to date received orders of over $55bn (£43.5bn) from a range of carmakers, including BMW, Scania, Volvo Cars, and Volkswagen Group.
Peter Carlsson, Northvolt’s chief executive and co-founder, told the Financial Times today: “This financing is a milestone for the European energy transition and demonstrates that circular, sustainable business practices are fundamental to success in today’s industry”.
News of the loan comes at a key time for the company, which is mooted for a $20bn (£15.82bn) IPO in Stockholm sometime this year in what would be one of the biggest listings in recent years for the European market.
The company recently received state aid from Brussels to the tune of €902m (£776.8m) to build an electric vehicle-focused battery manufacturing facility in Germany’s Schleswig-Holstein area.
