Polestar has completed a new round of debt-to-equity conversions with its major shareholders, Geely Sweden Holdings and Volvo Cars, as the electric vehicle manufacturer continues to strengthen its balance sheet and extend its debt maturity profile.
The transactions, completed on June 30, converted approximately $366 million of outstanding shareholder loans into Polestar equity.
Shareholders Increase Equity Support
Geely Sweden Holdings converted approximately $300 million of shareholder debt into equity, while Volvo Cars converted an additional $66 million.
The latest transactions increase the total amount of shareholder debt converted into Polestar equity since the beginning of 2026 to approximately $640 million.
Polestar also confirmed that the remaining shareholder loan of approximately $660 million from Volvo Cars will mature in December 2031.
Separately, the company agreed with Geely Sweden Holdings on June 3 to extend the maturity of its subordinated term loan facility until June 30, 2027. The financing facility was originally established in December 2025.
Green Financing Facility Expanded
Polestar also strengthened its liquidity by expanding its Green Trade Finance Facility.
Following the completion of financing documentation, the facility increased by €50 million to a total of €450 million on June 5 through the addition of Fubon Bank (Hong Kong) to the lending syndicate.
Standard Chartered Bank continues to serve as the structuring bank and facility agent for the financing program.
Capital Structure Improved
The conversion price for Geely Sweden Holdings’ approximately $300 million debt-to-equity transaction was set at $19.34 per share.
Volvo Cars’ conversion price was calculated at 95% of the 30-day volume-weighted average price of Polestar shares through March 27, 2026.
The company said the transactions improve its financial position by reducing debt while extending the maturity profile of its remaining borrowings.
“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,” said Chief Executive Officer Michael Lohscheller.
Headquartered in Gothenburg, Sweden, Polestar currently sells its electric vehicles across 31 markets in North America, Europe, and Asia-Pacific. Its current lineup includes the Polestar 2, Polestar 3, Polestar 4, and Polestar 5, with additional models planned in the coming years, including the Polestar 7 compact SUV and the Polestar 6 roadster.