by Suman Gupta
- Green loan facilitated by Standard Chartered Bank for GreenCell Mobility’s Surat E-Mobility Project aimed at reducing ~100,000 Tonnes of CO2 Emissions over Project lifetime
- First-Ever Green Loan Facility for an Indian E-Mobility Project
National, 28th September 2023: GreenCell Mobility, a pioneer in India’s electric mobility sector, is thrilled to announce its green financing deal with the leading global bank, Standard Chartered Bank to revolutionise sustainable urban transportation in India. The company has successfully secured a green Project Finance loan to finance their Surat E-Mobility project, making it a notable financing partnership in India’s electric mobility sector. The accomplishment was made possible with Standard Chartered Bank, which served as the sole mandated arranger, lender, and green loan coordinator for the Rs. 1.25 billion Project Finance Facility.
The Surat E-Mobility project, which consists of 150 electric buses in Gujarat, not only establishes itself as an exceptional precedent in the E-Mobility sector but also represents the first-ever project finance transaction in India’s E-Mobility sector by a global bank. Furthermore, it represents a historic event for the company and Standard Chartered Bank, marking this as the first project finance transaction in the E-Mobility sector globally.
Mr. Devndra Chawla, CEO & MD of GreenCell Mobility, shared his excitement over this historic achievement, saying, “We are thrilled to announce that GreenCell has availed green loan by the leading global bank, Standard Chartered Bank, in a significant move to step up our efforts towards transforming India’s electric transportation landscape. The green financing secured for our project, will not only boost our operations, but also reaffirm our leadership in the e-mobility sector in India.”
Mr. Alper Kilic, Global Head, Project & Export Finance of Standard Chartered Bank, “We are delighted to support GreenCell Mobility on this landmark financing, the first of its kind by any global bank in the E-mobility sector in India reinforcing SCB’s commitment to mobilise USD 300Bn of green and transition finance by 2030.”
The Surat project is positioned to have a substantial environmental impact, with an estimated 1 lakh tonnes of CO2 emission reduction over the project’s lifetime. This is also the first Green Loan Project Finance facility for an e-mobility project in India and globally, by the Standard Chartered Bank.
Following the parameters of the FAME II Scheme, the Project Finance Facility will provide finance for the acquisition, operation, and maintenance of 9-meter-long fully-built pure AC Electric Buses on a Gross Cost Contract basis. Under a 10-year concession deal with the Surat Municipal Corporation, these buses will run within the city of Surat, Gujarat, delivering a consistent revenue profile through a fixed per-kilometer fee structure that mitigates traffic risk.
GreenCell Mobility’s partnership with Standard Chartered Bank indicates the company’s dedication to mobilising green and transition finance, following the Loan Market Association’s Green Loan Principles, and complying with the International Financial Corporation’s Performance Standards on Environmental and Social Sustainability.
About GreenCell Mobility Pvt. Ltd: GreenCell Mobility has been promoted by Eversource Capital, India’s leading climate impact investor. Eversource Capital is an equal joint venture between Everstone Group (http://www.everstonegroup.com), one of Asia’s premier investment manager with assets in excess of US$7 billion across private equity, sustainability and climate impact, logistics, digital and venture capital; and Lightsource bp, a global leader in development and management of solar energy projects.
Eversource manages India’s largest climate impact fund with anchor investments from India’s National Investment & Infrastructure Fund and UK Government’s Foreign, Commonwealth & Development Office (FCDO).
GreenCell is building a platform to provide Electric Mobility-as-a-Service (eMaaS), initially using electric buses and delivering the core value proposition of cheaper non-polluting on-demand shared transportation, charging infrastructure, and enabling products for the e-mobility value chain. For more information, please visit http://www.greencellmobility.com
