Canada's Investment Management Corporation of Ontario (IMCO) has invested $400 million in Northvolt, a Swedish battery producer, to aid the expansion of its lithium-ion battery production, ahead of a potential initial public offering.
Northvolt, whose investors include BMW and Volkswagen, has raised over $8 billion in debt and equity since 2017. IMCO's investment in Northvolt via convertible notes provides regular interest payments and downside protection, while allowing Northvolt to avoid disclosing its equity value.
The investment aligns with IMCO's strategy to invest in the shift towards a lower-carbon economy and the restructuring of global supply chains.
Northvolt is reportedly in talks with banks about an IPO that could value the company at over $20 billion.
