BHUBANESWAR, SEPT 28, 2023
GreenCell Mobility, a pioneer in India’s electric mobility sector, has secured a green Project Finance loan for its Surat E-Mobility project in collaboration 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.
Sharing his excitement over this historic achievement, GreenCell Mobility CEO & MD Devndra Chawla said, “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.”
“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,” said Alper Kilic, Global Head, Project & Export Finance of Standard Chartered Bank.
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-kilometre 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.