Updated February 12th, 2024 at 13:14 IST

Battery maker ACC secures $5 bn financing for 3 European factories

Battery maker ACC secures $5 bn financing for 3 European factories

Reported by: Business Desk
Battery maker ACC secures $5 bn financing for 3 European factories | Image:ACC
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Auto financing: European automotive battery maker ACC, co-owned by Stellantis, Mercedes and TotalEnergies, on February 12 announced the completion of a major financing round for the development of three "gigafactories" in France, Germany and Italy.

The bank financing worth 4.4 billion euros ($5 billion), a large chunk of its total needed investment estimated at just over 7 billion euros, was one of the largest debt fundraising operations ever carried out in the European automotive sector,  Automotive Cells Company (ACC), said.

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Yann Vincent, MD of ACC, said, "This deal with the banks reflects the very high level of confidence of these lenders in the ACC project," 

French lender BNP Paribas acted as exclusive financial adviser to ACC. 

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Financing details

The financing deals were struck with a consortium of banks such as BNP Paribas, Deutsche Bank, ING, Intesa Sanpaolo, the French public bank Bpifrance, insurer Euler Hermes and the Italian export insurer SACE.

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The money will fund the construction of four new ACC production lines - a second one in France, a first one in Kaiserslautern in Germany, and two in Termoli in Italy.

They come on top of the company's first production unit producing lithium-ion batteries in Billy-Berclau in northern France, which was opened last year.

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The financing, which adds to public subsidies already granted or committed, will be supplemented by new cash injections from the three shareholders of ACC of an unspecified amount, the company said.

As a result, Stellantis will hold a 45 per cent stake in ACC at the end of March, Mercedes-Benz will hold 30 per cent and Saft, owned by oil giant TotalEnergies 25 per cent.

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(With Reuters Inputs)

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Published February 12th, 2024 at 13:14 IST