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Allen & Overy advises Volkswagen AG on a EUR 400m convertible loan to Northvolt AB

 

21 June 2019

Volkswagen AG has concluded a EUR 400 million convertible loan agreement with Northvolt AB, a Swedish lithium-ion battery manufacturer, in connection with its investment in the company.  

The loan, for which Allen & Overy provided legal advice, is part of a total investment of EUR 900 million, consisting of an equity portion of EUR 500 million and the loan, which can also be converted into shares in the company upon expiration.

The convertible loan is intended in part to finance a joint venture still to be established between Volkswagen and Northvolt in Germany for the production of batteries with an output of 16 gigawatts and is a central component of the electrification strategy of the globally active car manufacturer.

The Allen & Overy team: partner Dr Norbert Wiederholt and senior associate Dr Jan-Hendrik Bode (both lead, both banking and finance), partners Dr Alexander Behrens (banking regulatory) and Dr Knut Sauer, senior associate Kai Schadtle (all Frankfurt) as well as partners Pierre Schleimer and Henri Wagner (both Luxembourg, all capital markets).

The team of Volkswagen AG: Gerko Freiherr von Hammerstein-Gesmold, Isabelle Hofemeier.

Advising on matters of Swedish law: Advokaten Roschier with partners Ola Ahmann, Markus Olsson and senior associate Axel Bonning (all Finance, all Stockholm).

Commenting on the transaction, Norbert Wiederholt says: “We are delighted to have been able to support Volkswagen in this important and strategic project.”

Norbert Wiederholt and Jan-Hendrik Bode also recently advised IONITY GmbH & Co. KG, a joint venture between vehicle manufacturers, the Volkswagen Group (with Audi and Porsche), BMW Group, Daimler AG and Ford Motor Company for building and operating a Europe-wide network of high-power charging stations for electric vehicles, on two bilateral financing arrangements.

 

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