Bulletin: Proposed Secondary Listing of CATL Will Solidify Its Credit Profile

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Feb. 14, 2025--A proposed secondary listing by Contemporary Amperex Technology Co. Ltd. (CATL) in Hong Kong will bolster the company?s global expansion and market position. Potential proceeds of US$5.0 billion from the listing will also facilitate offshore funding that the company may need for capacity expansion in Europe. Production expansion in Europe will help CATL (A-/Stable/--) maintain its No. 1 position in the global battery market over the next two years. The Shenzhen-listed battery maker is building a gigafactory in Hungary to localize and expand battery production in Europe. This is in response to growing demand for batteries and follows the company?s first battery plant in Germany.

...February 13, 2025 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Feb. 14, 2025--A proposed secondary listing by Contemporary Amperex Technology Co. Ltd. (CATL) in Hong Kong will bolster the company's global expansion and market position. Potential proceeds of US$5.0 billion from the listing will also facilitate offshore funding that the company may need for capacity expansion in Europe. Production expansion in Europe will help CATL (A-/Stable/--) maintain its No. 1 position in the global battery market over the next two years. The Shenzhen-listed battery maker is building a gigafactory in Hungary to localize and expand battery production in Europe. This is in response to growing demand for batteries and follows the company's first battery plant in Germany. Stricter carbon emission rules in Europe are also prompting European automakers to accelerate the rollout of electric vehicles and investment into battery supply chain. This partly accounts for Stellantis...

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