Rivian discloses $1 billion, 10-year loan from Volkswagen Group at 6.03% fixed rate
In short
US electric vehicle maker Rivian disclosed in a regulatory filing on October 7 that it has obtained a 10-year, $1 billion loan from Volkswagen Group at a fixed annual interest rate of 6.03%. The loan is non-recourse to Rivian, is secured by the 50% stake in the companies' joint venture held by its subsidiary Rivian JV SPC, LLC, and matures on October 7, 2036.
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US electric vehicle maker Rivian has obtained a 10-year, $1 billion loan from Volkswagen Group at a fixed annual interest rate of 6.03%, according to a regulatory filing the company submitted on October 7 local time, Jiemian reported. CLS reported that the loan matures on October 7, 2036. [ 1 , 2 , 3 ]
According to Jiemian, the loan is part of arrangements related to the two companies' existing joint venture agreement. It is non-recourse to Rivian and is secured by the 50% stake in the joint venture held by Rivian JV SPC, LLC, a wholly owned Rivian subsidiary. 36Kr carried the same report, citing Jiemian. [ 2 , 3 ]
Why it matters
The loan is part of arrangements under the existing joint venture agreement between Rivian and Volkswagen Group, according to Jiemian. Because it is secured by Rivian's 50% stake in the joint venture, the financing is tied directly to that partnership. Chinese business and tech outlets reported it as company financing news.
Key facts
- Rivian has obtained a $1 billion loan from Volkswagen Group. [ 1 , 2 , 3 ]
- The loan has a 10-year term and a fixed annual interest rate of 6.03%. [ 2 , 3 ]
- The loan matures on October 7, 2036. [ 1 ]
- Rivian disclosed the loan in a regulatory filing on October 7 local time. [ 2 , 3 ]
- The loan is non-recourse to Rivian. [ 2 , 3 ]
- It is secured by the 50% joint venture stake held by Rivian's wholly owned subsidiary Rivian JV SPC, LLC. [ 2 , 3 ]
- The loan is part of arrangements related to the two companies' existing joint venture agreement. [ 2 , 3 ]
Confirmed by several sources
Still unclear
- How Rivian intends to use the loan proceeds. None of the reports say what the money will be used for.
- The October 7, 2036 maturity date. Only CLS reports the exact maturity date, although it matches the 10-year term reported by other outlets.