UAE’s Al Futtaim Family Office has invested an undisclosed amount in Chinese EV giant BYD’s USD 5.6 bn share sale, according to a press release published on Tuesday. The investment will see Al Futtaim become a “strategic partner” of BYD, with a focus on expanding the presence of both entities within the sustainable transportation and advanced technologies markets, according to a separate press release (pdf).

About the offering: BYD sold some 130 mn shares at HKD 335.2 per share, up from an initial 118 mn shares, the Financial Times reported citing a term sheet it has seen. Purchases made by long-only funds alone raised at least USD 1.5 bn, people familiar with the matter told Bloomberg. The sale marked the largest equity follow-on offering in the automotive sector in the past ten years, Reuters reported.

What’s next for the EV maker? BYD will use the money raised to support the globalization of its New Energy Vehicles “and its overseas expansion in areas such as manufacturing, sales channels and brand promotion.” The company will also allocate the funds to technological advancement, improving operational stability, and increasing its capital reserve.

REMEMBER– The Dubai-based conglomerate has been ramping up its investments in sustainable mobility, with Al Futtaim Automotive planning to make hybrid and electric cars account for at least 50% of its UAE sales by 2030. It supplied e& last year with 100 EVs for its fleet in January 2024.

BYD has links in KSA: Last month, BYD inked contracts with the Saudi Electricity Company for a 12.5 GWh energy storage project which would bring BYD’s total battery energy storage system capacity in the country to 15.1 GWh. The company — through Al Futtaim as a representative — also partnered the month prior with Saudi’s EVIQ to boost EV adoption in the country and agreed in July to build a USD 1 bn EV and hybrid production plant in Turkey.

IN OTHER INVESTMENT UPDATES-

Arab Energy Fund + Hartree Partners launch climate tech investment platform: The Riyadh-based Arab Energy Fund — previously the Arab Petroleum Investments Corporation — and energy and commodities firm Hartree Partners have launched a USD 120 mn climate tech investment platform named TAEF Hartree Cleantech LP, according to a press release published on Tuesday. The platform will provide market data to VC companies interested in investing and growing decarbonization startups in the venture capital stage.

The fund is committed to green tech: The fund announced plans during COP28 to invest about USD 1 bn in the green tech sector to support MENA’s decarbonization efforts over five years. It also allocated 18% of its USD 4.5 bn loan portfolio at the time toward ESG projects.

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