CHINESE electric-car maker Xpeng Inc. has signed an agreement with banks for a 12.8 billion yuan (US$2 billion) line of credit.

Agricultural Bank of China Ltd., Bank of China Ltd., China Construction Bank Corp., China Citic Bank Corp. and Guangzhou Rural Commercial Bank Co. will provide the facilities to support Xpeng’s business and help expand its manufacturing, sales and service capabilities, the company said in a statement yesterday.

Like other Chinese EV makers Nio Inc. and Li Auto Inc., Xpeng has captured investors’ imagination. Its shares, sold for US$15 in the United States in August last year, are currently trading at US$44.36. It raised US$900 million before its initial public offering and US$1.7 billion during its share sale.

Last month, Xpeng further replenished its coffers, raising US$2.5 billion in its first follow-on public offering by selling American depositary shares at US$45 apiece. Its backers include Alibaba Group Holding Ltd. and Hillhouse Capital Management Ltd.

Netting US$5.1 billion and now another US$2 billion in credit lines in such short order also shows how costly making electric cars can be. (SD-Agencies)