Electric car maker Polestar (PSNY.O) announced a $400 million equity investment from Feathertop Funding Limited, a special purpose firm established by Sumitomo Mitsui Banking Corporation and Standard Chartered Bank.

In December, Spain’s BBVA (BBVA.MC) and France’s Natixis invested $300 million and Polestar’s main owner, China’s Geely Holding, borrowed up to $600 million.
“Following the new equity financing and the funding announcements in December, and with the support of Geely Holding, we continue to make progress on enhancing our liquidity position and strengthening our balance sheet,” said Polestar CFO Michael Lohscheller.

The Swedish automaker is struggling financially as EV demand slows. It burnt through a lot of cash to scale like many other EV startups and has struggled to manage its liquidity and debt.

To avoid breaching debt covenants, the company has regularly negotiated revisions with lenders and agreed with creditors to adjust several restrictions throughout the year.
Polestar stated that Sumitomo Mitsui and Standard Chartered will not own more than 10% of Polestar’s shares after the deal.