Aston Martin has received an investment from Saudi Arabia’s sovereign wealth fund, part of a $777.5 million raise to help the car brand that returned to Formula 1 last year alleviate debt.
The luxury carmaker is raising fresh capital to revive its image as a brand — after approaching bankruptcy — with investments in electronic tech, the development of new models, and F1.
- The Saudis’ Public Investment Fund is investing roughly $93 million.
- It will also take part in a $687 million rights issue.
- The transactions will make the wealth fund Aston Martin’s second-largest shareholder.
- Mercedes-Benz will also contribute $67 million to the raise.
Aston Martin will use up to half of the capital raised to pay down debt, which incurs roughly $155 million in interest a year. The public limited company reported an operating loss of $57 million in Q1 2022, up from a loss of $18 million for the same period a year prior.
Its market value reached $517 million last week, down substantially from $2 billion at the start of 2022.
New Home
Aston Martin’s F1 team — backed by billionaire Lawrence Stroll, who became the brand’s executive chairman after leading a $235.6 million investment in 2020 — is building a new manufacturing and racing facility in England slated to open by late 2023.
Billed as F1’s first “smart” facility, the complex will cost between $207 million and $276 million.
The 400,000-square-foot campus will house Aston Martin’s entire manufacturing system.
