GreenCell gets INR 300 cr credit from Sumitomo Mitsui Bank for UP e-bus project

New Delhi: GreenCell Mobility, a pioneer in the electric mass mobility sector, has secured Green Financing worth over INR 300 crore from the Sumitomo Mitsui Banking Corporation (SMBC), Japan for its electric bus project in Uttar Pradesh.

According to the terms of the agreement, SMBC has extended a long-term Project Finance facility to GreenCell Mobility for its 350 electric buses project in UP. This INR 3.07 billion project finance facility is to facilitate the deployment of 9-metre fully-built AC electric buses across 8 cities in UP, the company said in a media release.

Devndra Chawla, MD & CEOof GreenCell Mobility, said, "Our 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, the release said.

Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacificat Sumitomo Mitsui Banking Corporation, said, "We are proud to facilitate this groundbreaking financing deal with GreenCell Mobility, 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."

Hiroyuki Mesaki, Country Head of SMBC India, said, "We are excited to initiate our journey into India's e-mobility sector through our 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, we aim to help the transition towards cleaner transportation solutions, paving the way for a more sustainable future"