Finance

Finance

Select Credit Investment Into Batteries and EVs

Select Credit Investment Into Batteries and EVs

Convertible debt and green bonds have broadened the access to capital for battery companies

CAD 200mm

$1,725mm(1)

$1,200mm

$1,500mm

Convertible Bond Issuance

3.625% Green Convertible Bond Issuance

Convertible Bond Issuance

4.625% Green Bond Issuance

Use: Battery factory outside of Montréal

Use: projects related to clean transportation

Use: European & North American expansion

Use: Projects related to clean transportation

Nov 2023

Oct 2023

Aug 2023

Aug 2023

$340mm

$150mm

$1,100mm

$300mm

0.0% Convertible Bond Issuance

3.0% Convertible Bond Issuance

Convertible Bond Issuance

3.5% / 5.0% PIK toggle Convertible Bond Issuance

Use: GCP, Battery pack, future development

Use: manufacturing line in Malaysia

Use: European battery manufacturing

Use: Support growth initiatives

Jul 2023

Apr 2023

Jul 2022

Aug 2022

Source: Public Filings, Press Releases,

As a result of the difficult equity market environment and the maturing business profile, corporate issuers have explored alternative financing options, such as debt and green bonds

Convertible bonds provide issuers with a low cost of capital and defer possible share dilution. Issuers of convertible bonds are able to issue at a discount to the respective vanilla bond, given the embedded equity optionality

Private credit has been a growing capital base from alternative asset managers. 2023 marked the announcement of several large mega fund private credit / flexible capital funds dedicated to clean transition. These new funds will likely serve as a source financing to support the large CapEx needs for the battery industry

With 9,920GWh of projected battery gigafactory capacity by 2030 across 410 plans (up from 1,722GWh in 2022), there will be an increasingly large demand to access large quantities of low cost capital

Extracted from the PDF; charts and images may read imperfectly.