GreenCell Mobility has secured green financing from Sumitomo Mitsui Banking Corporation (SMBC), a leading Japanese financial institution, for its electric bus project in Uttar Pradesh.
Under the terms of the agreement, SMBC has extended a long-term project finance facility to GreenCell Mobility for its 350 electric buses project in Uttar Pradesh. This INR 307 crore project finance facility signifies a significant leap forward in both low carbon transportation and financial innovation in India. The project aims to slash approximately 2.35 lakh tonne of gross CO2 emissions over its contract lifespan by deploying 9-meter fully built pure AC electric buses across eight cities in Uttar Pradesh.
The project finance facility will facilitate the procurement, operation, and maintenance of electric buses under the FAME II Scheme, administered by the Uttar Pradesh Government's Directorate of Urban Transport. Operating under a 10-year concession agreement, the project ensures a fixed per-kilometre fee, mitigating traffic risk and ensuring a consistent revenue stream akin to an annuity.
Devndra Chawla, MD & CEO of GreenCell Mobility, said the company’s collaboration with Sumitomo Mitsui Banking Corporation underscores its commitment to sustainable mass mobility. The green financing marks a major milestone in its efforts to revolutionise India's electric transportation landscape. GreenCell Mobility is proud to be 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, remarked, 'We are honored to facilitate this groundbreaking financing deal with GreenCell Mobility, further underscoring 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 standards for responsible financing and environmental stewardship.'
Hiroyuki Mesaki, Country Head of SMBC India, added, “By Leveraging our financial expertise and global network, we aim to accelerate the transition towards cleaner transportation solutions, paving the way for a more sustainable future.'
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