PSNY

By Dominic Chopping

STOCKHOLM--Volvo Car AB said Thursday it is providing Polestar Automotive Holding UK PLC with an $800 million 18-month term loan, matching a commitment from Polestar's other major shareholder PSD Investment.

The total $1.6 billion financial and liquidity support comes as capital markets are volatile and unpredictable and will provide Polestar with sufficient funds through 2023.

Volvo Car's loan includes an option to convert to equity in a potential future equity raise by Polestar, it said.

"Polestar is our affiliate brand and an important business partner, as it plays a key role in our strategic direction to become fully electric by 2030 and shape the future of mobility," said Johan Ekdahl, Volvo Car Chief Financial Officer.

"The financial support provided by us along with Polestar's other main owner will ensure Polestar remains steadfast on further delivering on its ambitions as a performance EV car brand," he added.

Volvo Car established Polestar as an electric vehicle-focused brand and is the largest institutional shareholder in the company, holding a 48.3% stake.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

November 03, 2022 08:52 ET (12:52 GMT)

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