Mumbai, May 08: GreenCell Mobility, a pioneer in Electric Mass Mobility sector, has secured Green Financing from leading Japanese financial institution Sumitomo Mitsui Banking Corporation (SMBC) for its transformative Electric Bus project in Uttar Pradesh.
This transaction not on lymarksthe 1st Project Finance by a Japanese bank in the Electric Mobility domain in India but is also SMBC’s 1stProject Finance transaction in E-Mobility in Asia Pacific.
According to the terms of the agreement, SMBC has extended a long-term Project Finance facility to Green Cell Mobility for its350 Electric Buses project in Uttar Pradesh. This INR3.07 billion Project Finance facility represents a pivotal step in both low car bon transportation and financial innovation in India.
The project is expected to reduce approximately 2.35 lakh tonnes of gross CO2 emissions over its contract life span, 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, commented, this is their 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.
The Project Finance facility will help with the procurement, operation, and maintenance of electric buses under the FAME II Scheme, which is administered 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, mitigating traffic risk and ensuring a consistent revenue stream similar to an annuity.
Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, stated, they are proud to facilitate this ground breaking financing deal with GreenCell Mobility.
These will 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.
Commenting on the transaction, Mr. Hiroyuki Mesaki, Country Head of SMBC India, stated they are excited to initiate their journey into India’se-mobility sector through their 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, they aim to help the transition towards cleaner transportation solutions, paving the way for a more sustainable future.
Sumitomo Mitsui Banking Corporation (SMBC), based in Tokyo, is a major global financial institution and a key member of Sumitomo Mitsui Financial Group (SMBC Group).
With arich history dating back to 1876, SMBC prioritises customer-centricity and offers seamless access to financial services throughout Asia Pacific. SMBC is committed to sustainability and strives to build a prosperous and sustainable society for current and future generations.
GreenCell Mobility has been promoted by Ever source Capital, India’s leading climate impact investor. GreenCell is building a platform to provide Electric Mobility-as-a-Service (eMaaS), initially using electric buses and delivering the core value proposition of cheapernon-polluting on-demand shared transportation, charging infrastructure, and enabling products for the e- mobility value chain.
