GreenCell gets INR 300 cr credit from Sumitomo Mitsui Bank for UP e-bus project
GreenCell Mobility, a leader in the electric mass mobility space, has received Green Financing for its electric bus project in Uttar Pradesh, valued at over INR 300 crore, from the Sumitomo Mitsui Banking Corporation (SMBC), Japan.
In accordance with the provisions of the agreement, GreenCell Mobility has been granted a long-term Project Finance facility by SMBC for their 350 electric bus project in Uttar Pradesh. According to a press statement from the company, this INR 3.07 billion project finance loan would enable the installation of 9-meter completely constructed AC electric buses throughout 8 cities in Uttar Pradesh.
In accordance with the provisions of the agreement, GreenCell Mobility has been granted a long-term Project Finance facility by SMBC for their 350 electric bus project in Uttar Pradesh. According to a press statement from the company, this INR 3.07 billion project finance loan would enable the installation of 9-meter completely constructed AC electric buses throughout 8 cities in Uttar Pradesh.
“Our historic partnership with Sumitomo Mitsui Banking Corporation demonstrates GreenCell Mobility’s unwavering dedication towards sustainable mass mobility. The Green Financing is a significant milestone to step up our efforts towards transforming India’s electric transportation landscape. GreenCell Mobility has become the first Indian company to secure Green Financing from global banks Standard Chartered and Sumitomo Mitsui Banking Corporation.”
Devndra Chawla, MD & CEOof GreenCell Mobility, said.
Under the FAME II Scheme, which is run by the Uttar Pradesh government’s Directorate of Urban Transport, the Project Finance facility will assist with the purchase, use, and upkeep of electric buses. According to the announcement, the project, which is run under a 10-year concession deal, ensures a fixed per-kilometer price, reducing traffic risk and providing a steady stream of income akin to an annuity.
“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.”
Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacificat Sumitomo Mitsui Banking Corporation, said.
“We are excited to initiate our journey into India’s e-mobility sector through our collaboration with GreenCell Mobility. This transaction exemplifies our dedication to fostering sustainable practices and underscores our commitment to supporting innovative projects that drive positive environmental impact. 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”
Hiroyuki Mesaki, Country Head of SMBC India, said.
Content Credit: ET Auto
