Polestar announces completion of USD 640 million debt-to-equity conversions
1 July 2026
- Total of USD 640 million debt converted into Polestar’s equity since the start of 2026
- Term of recent shareholder loan from Geely Sweden Holdings AB extended
- Green Trade Finance Facility increased to EUR 450 million
GOTHENBURG, SWEDEN – 1 July 2026. Polestar (Nasdaq: PSNY) announces that Geely Sweden Holdings AB and Volvo Cars completed previously announced debt-to-equity conversions. On 30 June 2026, approximately USD 300 million and USD 66 million of their respective outstanding shareholder loans were converted into Polestar’s equity. This brings the total of debt converted by the parties into Polestar’s equity to approximately USD 640 million since the beginning of 2026. As previously announced, the remaining approximately USD 660 million of Volvo Cars’ shareholder loan matures in December 2031.
On 3 June 2026, Polestar and Geely Sweden Holdings AB agreed to extend the term of the outstanding amount of the subordinated term loan facility, which was initially provided to Polestar in December 2025, to 30 June 2027.
Following the completion of the relevant loan documentation, on 5 June 2026, the Green Trade Finance Facility (TFF) was increased by an additional EUR 50 million to EUR 450 million through the addition of Fubon Bank (Hong Kong) Limited as a new member of the TFF syndicate. Standard Chartered Bank continues to act as Structuring Bank and Facility Agent for the TFF.
Michael Lohscheller, Polestar CEO, says: “We are pleased to report the completion of debt-to-equity conversions by Geely Sweden Holdings AB and Volvo Cars. These transactions, together with further extensions of existing facilities, improve Polestar’s capital structure and lengthen our debt maturity profile, as we continue the ramp-up of our new product portfolio.”
Additional information about the debt-to-equity conversions
The conversion price for Geely’s debt-to-equity conversion of approximately USD 300 million was set at a conversion price of USD 19.34.
The conversion price for Volvo Cars’ debt-to-equity conversion of approximately USD 340 million was set at 95 per cent of the 30-day volume-weighted average price in Polestar shares up to 27 March 2026.
Previous press releases about the debt-to-equity conversions:
31 March 2026: Polestar announces updates to its capital structure and intention to consolidate Polestar 3 manufacturing
19 December 2025: Polestar announces equity financing transaction of USD 300 million and a USD 300 million debt to equity conversion
Ends.
Originally published by Polestar
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