Axis Bank has recently extended a substantial loan of Rs 1 billion to Everest Fleet, earmarked specifically for the procurement of electric vehicles. This financial support aims to empower Everest Fleet in realizing its vision of deploying these electric vehicles as green taxis in India. This strategic move aligns with the growing emphasis on sustainable and eco-friendly transportation solutions.
The funding arrangement is part of a broader framework guarantee agreement worth USD 200 million in INR equivalent, previously inked by GuarantCo and Axis Bank in May 2022. This agreement lays the groundwork for mobilizing funds within the range of USD 300 to 400 million in INR equivalent, dedicated to bolstering the burgeoning e-mobility ecosystem in India.
What makes this financial arrangement noteworthy is the involvement of GuarantCo, which has provided a two-thirds on-demand credit guarantee to Axis Bank for this transaction. This collaborative effort signifies a collective commitment to fostering the growth of sustainable transportation solutions in the country. Notably, this is the second transaction consummated under the framework agreement, following a prior Rs 2.5 billion (USD 30 million) loan provided to an impact-focused non-bank financial institution operating within the Indian e-mobility sector.
Rajiv Anand, Deputy Managing Director of Axis Bank, underscored the bank’s collaborative approach with GuarantCo in championing companies dedicated to sustainable transportation. Anand highlighted the importance of the blended finance transaction in supporting a service model and mobilizing development capital for initiatives aligned with combating climate change.
Layth Al-Falaki, CEO at GuarantCo, expressed satisfaction in closing the transaction with Everest Fleet under the framework guarantee agreement. He anticipates that this strategic move will have a transformative effect on the market, catalyzing the deployment of more electric vehicles by green ride-hailing companies in India. Al-Falaki emphasized the ongoing commitment to utilizing the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India. This commitment is in line with broader climate action aims aligned with the PIDG 2030 strategy.
