The financing solution provided by Axis Bank and GuarantCo to Vivriti Capital is estimated to increase the number of electric vehicles and charging stations.
12 Dec 2023 | 5033 Views | By Autocar Professional Bureau
Axis Bank in partnership with GuarantCo, a part of the Private Infrastructure Development Group (PIDG), has extended a three year loan worth Rs 2.5 billion, to Vivriti Capital, to bolster the e-mobility system in India.
Vivriti Capital is an India-based, impact focused non-bank financial institution. 4
GuarantCo has ...
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Axis Bank in partnership with GuarantCo, a part of the Private Infrastructure Development Group (PIDG), has extended a three year loan worth Rs 2.5 billion, to Vivriti Capital, to bolster the e-mobility system in India.
Vivriti Capital is an India-based, impact focused non-bank financial institution. 4
GuarantCo has provided a 50 percent on-demand credit guarantee to Axis Bank for this transaction.
The financing solution provided by Axis Bank and GuarantCo to Vivriti Capital is estimated to increase the number of electric vehicles and charging stations deployed which will reduce CO2 emissions and contribute towards progressing the Sustainable Development Goals in India. In addition, up to 665 jobs are estimated to be created through this transaction, 30 percent of which will be held by women
The transaction makes a direct contribution to SDG 9.4 (upgrade infrastructure and retrofit industries to make them sustainable with increased resource-use efficiency and greater adoption of clean and environmentally sound technologies and industrial processes), SDG 11.2 (provide access to safe, affordable, accessible, and sustainable transport systems for all) and SDG 5 (gender empowerment).
Rajiv Anand, Deputy Managing Director, Axis Bank said, "Through this blended finance structure, we aim not just to fuel innovation in the e-mobility ecosystem but also to significantly impact climate change by reducing carbon emissions in our country. On the occasion of COP28, we are excited to explore the transformative potential of this framework, underscoring our dedication to advancing a greener, more sustainable future for all."
Vineet Sukumar, Founder and Managing Director, Vivriti Capital said, “This will fuel our efforts to expand our green portfolio in India's e-mobility landscape as the government pursues the target of EV30@2030."
Layth Al-Falaki, CEO at GuarantCo, said: “We are delighted to have closed our first transaction under the framework agreement that we signed with Axis Bank in May 2022. The deal with Vivriti Capital will be the first of many under this framework, and we expect it to have a transformational impact on the market and lead to increased lending for the e-mobility ecosystem in India."
Vineet Sukumar, Founder and Managing Director, Vivriti Capital Ltd, said, “We are proud of this collaboration with Axis Bank and GuarantCo as we will actively contribute to fostering economic growth and sustainability. This will fuel our efforts to expand our green portfolio in India's e-mobility landscape as the government pursues the target of EV30@2030. Vivriti Group’s mission is to enable necessary debt finance to India’s mid-market ecosystem. We are not just building a business; we are building a world where financial success aligns seamlessly with environmental and social responsibility.”
Layth Al-Falaki, CEO at GuarantCo, said: “We are delighted to have closed our first transaction under the framework agreement that we signed with Axis Bank in May 2022. The deal with Vivriti Capital will be the first of many under this framework, and we expect it to have a transformational impact on the market and lead to increased lending for the e-mobility ecosystem in India."