Axis Bank has extended a three-year loan of Rs 250 crore to in partnership with GuarantCo to boost electric mobility in the country.
is a part of the Private Infrastructure Development Group (PIDG) while Vivriti Capital is an impact-focused non-bank financial institution.
The financing solution, provided by Axis Bank and GuarantCo to Vivriti Capital, is estimated to increase the number of electric vehicles and charging stations deployed which will reduce CO2 emissions and contribute towards progressing the sustainable development goals in India, a statement said.
In addition, up to 665 jobs are estimated to be created through this transaction with 30% of them to be held by women, it said.
“Axis Bank in partnership with GuarantCo has extended a $2.5 billion (Rs 250 crore) three-year loan to Vivriti Capital to support the company’s strategy to expand its portfolio by lending to companies operating in the e-mobility ecosystem in India,” as per the statement.
GuarantCo has provided a 50% on-demand credit guarantee to Axis Bank for this transaction, it said.
This guarantee is provided under the $200 million framework guarantee agreement which is signed by Axis Bank and GuarantCo to allow mobilisation of funds between $300-400 million to finance the e-mobility ecosystem in India, it said.
“Our partnership with GuarantCo empowers us to extend crucial financial support to Vivriti Capital, thereby aligning with our commitment to drive positive environmental outcomes while empowering communities. Through this blended finance structure, we aim not just to fuel innovation in the e-mobility ecosystem but also to significantly impact climate change by reducing carbon emissions in our country,” said Rajiv Anand, Deputy Managing Director at Axis Bank.
“We are proud of this collaboration with Axis Bank and GuarantCo as we will actively contribute to fostering economic growth and sustainability. This will fuel our efforts to expand our green portfolio in India’s e-mobility landscape as the government pursues the target of EV30@2030,” said Vineet Sukumar, Founder and Managing Director, Vivriti Capital Ltd.
Layth Al-Falaki, CEO at GuarantCo, said, “We are delighted to have closed our first transaction under the framework agreement that we signed with Axis Bank in May 2022. The deal with Vivriti Capital will be the first of many under this framework, and we expect it to have a transformational impact on the market and lead to increased lending for the e-mobility ecosystem in India.”
He said GuarantCo will continue to utilise the climate mitigation guarantee agreed with Axis Bank to increase its climate adaptation and mitigation initiatives in line with the PIDG 2030 strategy.
“The guarantee framework is our largest transaction since our inception in 2005 and we are confident that it will make a significant contribution in accelerating EV usage in India and as a result significantly reduce carbon emissions to help address climate change in the country,” he added.
Edited by Kanishk Singh
