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GreenCell Mobility, a leader in the Electric Mass Mobility sector, has secured green financing from Sumitomo Mitsui Banking Corporation (SMBC), a prominent Japanese financial institution, for its groundbreaking Electric Bus project in Uttar Pradesh.
This landmark transaction marks the first project finance initiative by a Japanese bank in Indias Electric Mobility domain and also represents SMBCs inaugural project finance transaction in E-Mobility within the Asia Pacific region.
Under the terms of the agreement, SMBC has provided a long-term project finance facility to GreenCell Mobility for its ambitious 350 Electric Buses project in Uttar Pradesh, amounting to INR 3.07 billion. This financial arrangement represents a significant advancement in both low-carbon transportation and financial innovation within India.
The project aims to reduce approximately 2.35 lakh tonnes of gross CO2 emissions throughout its contract lifespan by introducing 9-meter fully built pure AC Electric Buses across 8 cities in Uttar Pradesh.
Devndra Chawla, MD & CEO of GreenCell Mobility, emphasized the importance of this partnership, stating, "Our historic collaboration with Sumitomo Mitsui Banking Corporation underscores GreenCell Mobility’s steadfast commitment to sustainable mass mobility."
He further added, "The Green Financing signifies a major milestone in our efforts to revolutionize Indias electric transportation landscape. GreenCell Mobility is proud to be the first Indian company to secure Green Financing from global banks Standard Chartered and Sumitomo Mitsui Banking Corporation."The project finance facility will facilitate the procurement, operation, and maintenance of electric buses under the FAME II Scheme, overseen by the Uttar Pradesh governments Directorate of Urban Transport.
Operated under a 10-year concession agreement, the project ensures a fixed per-kilometer fee, mitigating traffic risk and ensuring a consistent revenue stream akin to an annuity.
Tomofumi Watanabe and Luca Tonello, Co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, expressed their pride in facilitating this groundbreaking financing deal. They stated, "This collaboration with GreenCell Mobility underscores our commitment to advancing sustainable initiatives in India and the Asia Pacific region."
They further added, "By aligning the transaction with the Green Loan Principles, we are setting new standards for responsible financing and environmental stewardship."
Hiroyuki Mesaki, Country Head of SMBC India, expressed excitement about entering Indias e-mobility sector through the collaboration with GreenCell Mobility. He highlighted, "This transaction exemplifies our dedication to fostering sustainable practices and underscores our commitment to supporting innovative projects that drive positive environmental impact."
Mesaki concluded, "By leveraging our financial expertise and global network, we aim to facilitate the transition towards cleaner transportation solutions, paving the way for a more sustainable future." |
