The banks will provide credit facilities to support the company's business operations and expansion of its manufacturing, sales and service capabilities.
Image credit“External authorization”
The EV-maker announced that it has formally reached a strategic partnership with five banks in Guangdong Province of China, and will carry out cooperation in promoting the sustainable development and construction of banks and enterprises. The five domestic commercial banks include the Agricultural Bank of China, the Bank of China, China Construction Bank, China CITIC Bank and Guangzhou Rural Commercial Bank.
"Looking ahead, 2021 presents us with exciting opportunities. We believe the strategic collaboration with these leading financial institutions will enable us to further accelerate growth by building upon our core strengths. With our unwavering commitment to technology innovation and customer services, we look forward to bringing a compelling EV experience tailored to our consumers," said He Xiaopeng, Chairman and CEO of the Company.
Xpeng completed several rounds of financing totaling over CNY 23 billion before going public on NYSE on August 27, 2020. The firm started off with an issue price of USD 15/share. The fund-raising amount reached USD 1.7 billion, setting the highest IPO record for new energy vehicles in the world.
As of now (January 11), Xpeng closed at USD 44.36/share, standing at a market value of USD 34.085 billion.
Xpeng is not the first automaker to reach credit agreements with banks.
Previously, in July 2020, NIO signed a strategic cooperation agreement amounting to CNY 10.4 billion with various banks such as CCB, ICBC, Bank of China, Agriculture Bank of China, Industrial Bank of China and China Merchants Bank.