Polestar completes $640M debt-to-equity conversions with Geely and Volvo Cars
Polestar announced the completion of $640 million in debt-to-equity conversions from Geely Sweden Holdings and Volvo Cars to improve its capital structure.
- USD 640 million
- USD 660 million
What Happened
Polestar announced that Geely Sweden Holdings AB and Volvo Cars completed previously announced debt-to-equity conversions on June 30, 2026. Approximately $300 million and $66 million of their respective outstanding shareholder loans were converted into Polestar equity, bringing the total debt converted to $640 million since the beginning of 2026. The remaining $660 million of Volvo Cars' shareholder loan matures in December 2031.
Additionally, on June 3, 2026, Polestar and Geely agreed to extend a subordinated term loan facility to June 30, 2027. On June 5, 2026, the Green Trade Finance Facility was increased by €50 million to €450 million, with Fubon Bank joining the syndicate.
“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.”
Why this matters
These conversions reduce Polestar's debt burden and extend its debt maturity profile, strengthening its financial position as it ramps up new vehicle launches.
Terms in This Story
- debt-to-equity conversion
- A transaction where a company converts outstanding debt into shares of its stock, reducing debt and boosting equity.
- shareholder loan
- A loan made by a shareholder to the company, often with flexible terms and lower priority than other debts.
- trade finance facility
- A credit line provided by a bank syndicate to support a company's trade operations, such as purchasing raw materials.
Summarised from the linked release; details can be imperfect — always verify against the original source.