GreenCell Mobility has secured a green financing deal with Standard Chartered Bank to fund its Surat E-Mobility project, marking a significant partnership in India’s electric mobility industry. Standard Chartered Bank acted as the exclusive mandated arranger, lender, and green loan coordinator for the Rs 1.25 billion Project Finance Facility.
The Surat E-Mobility project, consisting of 150 electric buses in Gujarat, stands as India’s first-ever project finance transaction in the E-Mobility sector facilitated by a global bank. This achievement is historic for both GreenCell Mobility and Standard Chartered Bank, signifying the first project finance transaction of its kind in the global E-Mobility sector.
Devndra Chawla, CEO & MD of GreenCell Mobility, expressed enthusiasm about this landmark accomplishment, stating, “We are thrilled to announce that GreenCell has availed a green loan from the leading global bank, Standard Chartered Bank, in a significant move to accelerate our efforts in transforming India’s electric transportation landscape. The green financing secured for our project will not only enhance our operations but also reaffirm our leadership in the e-mobility sector in India.”
Alper Kilic, Global Head of Project & Export Finance at Standard Chartered Bank, expressed delight in supporting GreenCell Mobility with this groundbreaking financing, which is the first of its kind by a global bank in India’s E-mobility sector. This underscores SCB’s commitment to mobilize USD 300 billion of green and transition finance by 2030.
The Surat project is set to have a significant environmental impact, with an estimated reduction of 100,000 tonnes of CO2 emissions over the project’s lifetime. It’s worth noting that this marks the first Green Loan Project Finance facility for an e-mobility project in India and globally, offered by Standard Chartered Bank.
In line with the parameters of the FAME II Scheme, the Project Finance Facility will provide funding for the purchase, operation, and maintenance of 9-meter-long fully-equipped pure AC Electric Buses under a Gross Cost Contract arrangement. These buses will operate in Surat, Gujarat, as part of a 10-year concession agreement with the Surat Municipal Corporation, ensuring a consistent revenue stream through a fixed per-kilometer fee structure that mitigates traffic-related risks.