GreenCell Mobility has secured Rs 300 crore in green funding from Sumitomo Mitsui Banking Corporation (SMBC), for its Electric Bus project in Uttar Pradesh.
This transaction not only marks the first Project Finance by a Japanese bank in the Electric Mobility domain in India but is also SMBC's first Project Finance transaction in E-Mobility in Asia Pacific, the press release noted.
According to the terms of the agreement, SMBC has extended a long-term Project Finance facility to GreenCell Mobility for its 350 Electric Buses project in Uttar Pradesh.
Operating under a 10-year concession agreement, the project guarantees a fixed per-kilometer fee, mitigating traffic risk and ensuring a consistent revenue stream similar to an annuity.
The project is expected to reduce approximately 2.35 lakh tonnes of gross Co2 emissions over its contract lifespan, by facilitating the deployment of 9 metres fully built pure AC Electric Buses across 8 cities in Uttar Pradesh.
Devndra Chawla, MD and CEO of GreenCell Mobility said, "Our historic partnership with Sumitomo Mitsui Banking Corporation demonstrates GreenCell Mobility’s unwavering dedication towards sustainable mass mobility. GreenCell Mobility has become the first Indian company to secure Green Financing from global banks Standard Chartered and Sumitomo Mitsui Banking Corporation."
Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, stated, "We are proud to facilitate this groundbreaking financing deal with GreenCell Mobility, further reinforcing our commitment to advancing sustainable initiatives in India and the Asia Pacific region."
"By aligning the transaction with the Green Loan Principles, we are setting new benchmarks for responsible financing and environmental stewardship," he added.
"By leveraging our financial expertise and global network, we aim to help the transition towards cleaner transportation solutions, paving the way for a more sustainable future," said Hiroyuki Mesaki, Country Head of SMBC India.