Polestar announced that Geely Sweden Holdings and Volvo Cars have 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.
The completed conversions bring the total debt converted by the parties into Polestar equity to approximately $640 million since the beginning of 2026.
Polestar previously announced that the remaining approximately $660 million of Volvo Cars’ shareholder loan matures in December 2031.
On June 3, 2026, Polestar and Geely Sweden Holdings agreed to extend the term of the outstanding amount of the subordinated term loan facility to June 30, 2027.
The subordinated term loan facility was initially provided to Polestar in December 2025.
Polestar also said that following completion of the relevant loan documentation, its Green Trade Finance Facility was increased by an additional €50 million to €450 million on June 5, 2026.
The increase was completed through the addition of Fubon Bank (Hong Kong) as a new member of the Green Trade Finance Facility syndicate.
Standard Chartered Bank continues to act as structuring bank and facility agent for the facility.
The conversion price for Geely’s debt-to-equity conversion of approximately $300 million was set at $19.34.
The conversion price for Volvo Cars’ debt-to-equity conversion of approximately $340 million was set at 95% of the 30-day volume-weighted average price in Polestar shares up to March 27, 2026.
Polestar said the transactions and facility extensions improve its capital structure and lengthen its debt maturity profile.
Polestar is a Swedish electric performance car brand headquartered in Gothenburg, Sweden.
The company’s vehicles are available in 31 markets across North America, Europe, and Asia Pacific.
Polestar’s current model lineup includes Polestar 2, Polestar 3, Polestar 4, and Polestar 5.
Planned models include a new Polestar 4 variant, a Polestar 2 successor, the Polestar 7 compact SUV, and the Polestar 6 roadster.
KEY QUOTES:
“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.”
Michael Lohscheller, CEO of Polestar
