Senior Mandated Lead Arranger in the financing of Northvolt 

IMI Corporate & Investment Banking Division of Intesa Sanpaolo acted as Senior Mandated Lead Arranger in the USD 5.07Bn financing of Northvolt on 22 December 2023.

The deal represents the largest green loan raised in Europe to date. In addition to the expansion of Northvolt Ett’s cathode production and cell manufacturing, the finance package will enable the expansion of the adjacent recycling plant, Revolt Ett, which is approaching the conclusion of its commissioning and is processing its first materials.

The facility recovers battery-grade metals with a carbon footprint 70% lower than mined raw materials, thereby enabling a fully integrated, circular battery production setup that has not previously existed outside of Asia.

The new debt includes refinancing of the USD 1.6Bn debt package raised in July 2020, and has been raised on the back of long-term offtake contracts amounting to over USD 55Bn with partners including BMW, Scania, Volvo Cars and Volkswagen Group. It is provided by a group of 23 commercial banks, as well as the European Investment Bank (EIB) and the Nordic Investment Bank (NIB), who are both supported by the European Commission’s InvestEU programme.

A significant portion of the commercial facilities are covered with certain guarantees combined with direct funding, provided by The Swedish National Debt Office, Euler Hermes, the Export-Import Bank of Korea (KEXIM), Nippon Export and Investment Insurance (NEXI) and the Korea Trade Insurance Corporation (K-Sure).