Syndicate including Nordea, ING and Citi to support Polestar’s working capital needs
London – Standard Chartered announced that it has led a syndicate of banks – which includes Nordea, ING and Citi (the “lenders”) – in the successful execution of a EUR 350 million uncommitted green trade finance facility with Polestar Performance AB (“Polestar”), the Swedish premium electric performance car maker and an affiliate to Volvo Cars and Geely Holding Group.
In addition to its role as the structuring bank, Standard Chartered also acted as mandated lead arranger together with Nordea.
The trade finance facility underscores the lenders’ support and commitment to Polestar’s growth and evolution as a major electric vehicle (EV) player by supporting its working capital needs.
Polestar’s strategic focus is to develop technologies to mitigate its environmental impact, from vehicle concept through to materials and production techniques. It is focused on the goal of producing a truly carbon neutral car by 2030, including the development of new interior materials and structural components. The facility – a market first syndicated green invoice finance facility – finances the import of EVs into Europe and North America and aligns with both the lenders’ and Polestar’s sustainability objectives to introduce more sustainable practices across their ecosystems.
The facility also supports and upholds the broader United Nations Sustainable Development Goals to move towards sustainable development, net-zero emissions, and a green economy by providing financing to this segment. Based on European Environment Agency’s estimation, an average car in Europe emits 107.8 grams of CO2 per kilometre1. Consequently, this facility could support the switch to EVs, potentially resulting in an estimated annual saving of 1,700 kilograms of CO2 per kilometre.
Simon Cooper, CEO, Corporate, Commercial & Institutional Banking and CEO, Europe & Americas at Standard Chartered, said: “We are delighted to have played a central role in delivering this facility alongside other leading global banks to support Polestar’s growth ambitions. This transaction is testament to our continued commitment to the sustainable business initiatives of our clients and accelerates our journey towards net-zero emissions and building a green economy.”
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