Rivian Is Raising $1.25 Billion in Green Bonds to Refinance 2026 Debt

Rivian just made it official: they’re raising $1.25 billion through a private bond sale. After reports last week hinted at a potential deal with JPMorgan to raise up to $2 billion, the company confirmed it’s moving forward with a $1.25B offering of “senior secured green notes” due in 2031.

So what does that mean?

In simple terms, Rivian is borrowing money from large institutional investors and promising to repay them by 2031, along with interest. The funds will be used to fully pay off their existing $1.25 billion in floating-rate debt that matures in 2026, essentially swapping short-term, likely more expensive debt for longer-term financing.

And because these are “green” bonds, they’re tied to projects with environmental benefits — something that aligns well with Rivian’s mission and could help attract ESG-focused investors.

These notes are secured by most of Rivian’s assets. Specifically, the bonds have a first-priority lien on the company’s general assets, and a second-priority lien only on a specific subset of assets, like inventory, receivables, and certain cash accounts, that are already pledged under Rivian’s asset-based revolving credit facility. It’s a nuanced but important distinction, and it reflects a solid collateral position for bondholders.

This isn’t a public offering, so you won’t see these bonds on Robinhood. The notes are being offered privately to large, qualified institutional buyers.

Why now? Rivian is still in growth mode, but it’s also navigating rising costs, especially from tariffs on parts sourced from Asia, like lithium-ion batteries. CEO RJ Scaringe recently said tariffs could add a few thousand dollars per vehicle. Rather than raise money by issuing more stock and diluting shareholders, this debt raise gives Rivian some breathing room while it continues ramping up production and deliveries.

We’ll keep an eye out for final terms, like the interest rate and who ends up participating — but for now, this move looks like a smart step to strengthen their financial position heading into 2026 and beyond.

Source: Nasdaq