Linklaters has advised the Lenders and Export Credit Agencies in relation to the £1.036bn financing of AESC’s new 15.8GWh electric vehicle battery gigafactory in Sunderland, UK.
This project will be only the second gigafactory project in the UK (after AESC’s existing plant) and will provide the blueprint for future deals and investment in this key sector for the transition to net zero. Once fully operational it will employ over 1000 people, bringing a significant economic boost to the region and local communities.
The plant will ultimately be capable of providing up to 15.8GWh battery supply when operating at full capacity, representing an almost six-fold increase on current UK gigafactory capacity. AESC’s 1.8GWh plant, which started production in 2012, is Europe’s first and the UK’s only EV battery factory for over a decade.
The closing of this financing represents a key milestone for AESC’s investment in the UK, and a win for the UK’s manufacturing and automotive sectors. This is also a strategic transaction for the UK Government, reflected in government support for the gigafactory in the form of both direct grant funding to the Project Company and UKEF and NWF support for the debt financing.
The consortium of Lenders comprised Standard Chartered Bank, HSBC, SMBC Group, Société Générale and BBVA. Part of the debt is being guaranteed by the National Wealth Fund (the NWF) and UK Export Finance (UKEF). The Linklaters team supported the Underwriters/ Lenders and ECAs on this unique transaction, which is the first of its kind in the UK.
Francesca Matthews commented:
“It was a privilege to advise the Lenders and Export Credit Agencies on the financing of AESC’s Sunderland gigafactory. This landmark transaction is a significant step for the UK’s green industrial transition, boosting regional development and supporting further innovation in the automotive sector.“
The core team was led by Energy & Infrastructure partners Francesca Matthews, Subir Rajadhyaksha (both London) and Tessa Lee (Milan), alongside counsel David Leeming and Jianbin Wang, managing associates Jonathon Holborn and Chathurika Ravindra, and associates Thomas Devine, Katie Rivers and Kiko Yap. The Energy & Infrastructure team was supported by Capital Markets, TMT & IP, Employment and Pensions, ESG, Anti-trust and Foreign Investments and Real Estate colleagues from across the global business, including the London, Milan, Tokyo, Beijing and Hong Kong offices.
