Rivian secures $1 billion term loan from Volkswagen joint venture

Rivian Automotive, Inc. (RIVN) announced the funding of a committed $1.0 billion, 10-year term loan facility from Volkswagen Group on Oct. 7, 2026, according to a regulatory filing. The financing was entered into in connection with the parties' existing joint venture agreement.

The term loans were funded in the full committed amount of $1.0 billion on the funding date. The joint venture used the proceeds of the Loan A Agreement to fund a concurrent borrowing by Rivian SPV under the Loan B Agreement. Rivian SPV used those proceeds to make a distribution to the company, which intends to use the funds for general corporate purposes.

Each of the loans will mature on Oct. 7, 2036. Beginning on the third anniversary of the funding date, $100.0 million of principal under each loan will be repaid each year in semi-annual installments of $50.0 million, with the remaining balance due at maturity.

Interest on the loans accrues at a fixed rate per annum of 5.93% for Loan A and 6.03% for Loan B. Interest payments will be made on a semi-annual basis, with the first payment due on the second anniversary of the funding date.