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Sunday, July 14, 2024

Aston Martin to Raise $777M with Help of Saudi PIF

  • The Saudis’ Public Investment Fund is investing roughly $93 million.
  • It will also take part in a $687 million rights issue.
Aston Martin competes in Formula 1. Honda will join the team in 2026.
David Kirouac-USA TODAY Sports

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.

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