For its electric bus project in Uttar Pradesh, GreenCell Mobility has obtained more than INR 300 crore in green financing from Sumitomo Mitsui Banking Corporation (SMBC) of Japan.
As per the conditions mentioned in the contract, GreenCell Mobility has received a long-term project finance arrangement from SMBC for its 350-bus electric project in Uttar Pradesh. According to a corporate release, this INR 3.07 billion facility is intended to facilitate the deployment of 9-meter fully-equipped AC electric buses throughout 8 cities in Uttar Pradesh.
Devndra Chawla, MD & CEO of GreenCell Mobility, expressed, “Our significant collaboration with Sumitomo Mitsui Banking Corporation highlights GreenCell Mobility’s commitment to sustainable mass transportation. This Green Financing marks a major milestone in our efforts to revolutionize India’s electric transport sector. GreenCell Mobility is proud to be the first Indian company to secure Green Financing from global financial institutions like Standard Chartered and Sumitomo Mitsui Banking Corporation.”
The Project Finance arrangement will facilitate the procurement, operation, and maintenance of electric buses under the FAME II Scheme, overseen by the Uttar Pradesh government’s Directorate of Urban Transport. Operating under a 10-year concession agreement, the project guarantees a fixed per-kilometer fee, thereby mitigating traffic risk and ensuring a steady revenue stream akin to an annuity, according to the statement.
Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, commented, “We are pleased to support this groundbreaking financing arrangement with GreenCell Mobility, further underscoring our commitment to promoting sustainable initiatives in India as well as the Asia Pacific region. By aligning the transaction with the Green Loan Principles, we are setting new standards for responsible financing and environmental stewardship.”
Hiroyuki Mesaki, Country Head of SMBC India, added, “We are excited to enter India’s e-mobility sector through our partnership with GreenCell Mobility. This transaction exemplifies our dedication to fostering sustainable practices and underscores our support for innovative projects that drive positive environmental impact. Utilizing our financial knowledge and worldwide connections, our goal is to support the shift towards cleaner transportation options, thereby laying the groundwork for a more sustainable future.”
