Sumitomo Mitsui Banking Corporation (SMBC) has awarded GreenCell Mobility Rs 300 crore in green funding for their Electric Bus project in Uttar Pradesh.
This deal represents not only the first Project Finance transaction in the history of SMBC in the Asia Pacific region, but also the first Project Finance transaction in the domain of Electric Mobility by a Japanese bank in India.
As per the conditions of the agreement, GreenCell Mobility has been granted a long-term Project Finance facility by SMBC for their 350 Electric Buses project in Uttar Pradesh.
The project, which operates under a 10-year concession deal, ensures a stable revenue stream akin to an annuity and mitigates traffic risk by guaranteeing a fixed per-kilometer cost.
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.