Rivian Automotive (NASDAQ:RIVN) revealed Monday that the electric automaker plans to borrow up to $15 billion in taxable bonds to help finance construction on a manufacturing plant in Georgia.
As per a November 9 agreement revealed in a securities filing, the bonds will be issued by the Joint Development Authority of Jasper, Morgan, Newton & Walton Counties. These bonds will be supported by rental payments from Rivian, forming part of an incentive arrangement designed to attract the car manufacturer.
Rivian is scheduled to begin construction on the plant near Atlanta, Georgia in early next year, having designated the site as its second factory by the end of 2021. The electric vehicle manufacturer has committed to investing $5 billion in the plant and aims to hire over 7,500 employees as the facility gradually scales up production to a peak capacity of 400,000 vehicles per year.
There has been some political pushback on the project, even as the automaker secured $1.5 billion from both the state and local areas.
The incentives package happens to be the largest ever in the state, offering various perks like tax credits, abatements, and subsidies. Back in July, the Georgia Supreme Court turned down an appeal from locals who were against the bond package, choosing not to take up the case.
Rivian will pay a minimum of $300 million in lieu of property taxes to the counties' Joint Development Authority until 2047. These payments are expected to increase should the company surpass its $5 billion investment threshold.
Shares of RIVN are up 0.86% in pre-market trading Tuesday morning.