Axis Bank announced that it has provided a three-year loan of Rs 250 crore to Vivriti Capital in collaboration with GuarantCo, a part of the Private Infrastructure Development Group (PIDG). This initiative aims to bolster electric mobility in India, with GuarantCo offering a 50% on-demand credit guarantee to Axis Bank for this transaction.
The financing arrangement is anticipated to contribute to the growth of electric vehicles and charging stations, aligning with sustainable development goals in India and reducing CO2 emissions.
In the joint effort, Axis Bank and GuarantCo plan to mobilize funds between USD 300-400 million to finance the e-mobility ecosystem in India under a USD 200 million framework guarantee agreement. The collaboration is expected to create up to 665 jobs, with 30% of them designated for women.
Rajiv Anand, Deputy Managing Director at Axis Bank, highlighted the significance of the partnership in supporting Vivriti Capital’s expansion in the e-mobility sector, emphasizing a commitment to positive environmental outcomes and community empowerment.
Vineet Sukumar, Founder and Managing Director of Vivriti Capital Ltd, expressed pride in the collaboration, emphasizing its role in fostering economic growth and sustainability.
Layth Al-Falaki, CEO at GuarantCo, expressed delight in closing the first transaction under the framework agreement, anticipating a transformative impact on the market and increased lending for the e-mobility ecosystem in India.
GuarantCo intends to leverage the climate mitigation guarantee with Axis Bank to enhance climate adaptation and mitigation initiatives in line with the PIDG 2030 strategy, contributing to addressing climate change in India.
