The deal represents one of the largest financial investments of its kind by HSBC. HSBC Head of Global Capital Financing Kevin Adeson will join the Better Place board of directors, and HSBC will own approximately 10 percent of the venture’s shares.
Adeson said: “We are confident that Better Place has the technical and commercial solutions to allow for the mass adoption of electric cars in the near term. The Better Place switchable battery solution, which addresses the range limitation of fixed battery electric cars, will offer the consumer an affordable and attractive alternative to current combustion engine and hybrid vehicles. We expect the Better Place model to be widely adopted across many countries and cities… “
Following the investment Better Place is valued at $1.25 billion. Earlier this month Israel Corporation completed its investment of $100 million in Better Place, injecting a further $15.38 million into the company at the same time.
New investors in this financing deal include HSBC, which invested $125 million of its own, Morgan Stanley Investment Management, and Lazard Asset Management.
They join existing investors including Israel Corp., VantagePoint Venture Partners, Ofer Hi-Tech Holdings, Morgan Stanley Principal Investments and Maniv Energy Capital, among others, as shareholders of Better Place.