Loan Syndication for Vertex Automotive’s Electric Vehicle R&D
Case Details
Client: Vertex Automotive Ltd.
Start Day: 15/09/2022
Project Name: Vertex Automotive Loan Syndication for EV Research and Development
Project Duration: 18 Months
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Project Description:
Vertex Automotive, a major automotive manufacturer, required significant capital to invest in research and development (R&D) for electric vehicles (EVs). The company needed a complex loan syndication to secure the funds necessary to develop a new line of EVs and battery technologies while managing its existing debt obligations.
Deliverables:
Loan Syndication Structure: INFINITY CAPITAL led the syndication of a $4 billion loan, working with a consortium of global banks to secure financing for Vertex’s R&D initiatives. The financing structure included multiple tranches, each tied to specific milestones in the R&D process.
Risk Mitigation and Hedging: INFINITY CAPITAL implemented hedging strategies to protect Vertex against market fluctuations, particularly in raw material prices for EV batteries. Additionally, a risk-sharing arrangement was established among the lenders to reduce the company’s financial exposure.
Advisory on Capital Allocation: INFINITY CAPITAL advised Vertex on the optimal allocation of funds across various R&D projects, focusing on areas with the highest potential for innovation and market disruption.
Timeline: 18 months for loan syndication and capital allocation.
Outcome: Vertex secured $4 billion in funding, allowing the company to accelerate the development of its new EV platform. The company expects to launch its first fully electric vehicle within 24 months, positioning Vertex as a strong competitor in the growing EV market.
