Axis Bank has extended a loan of Rs 1 billion to Everest Fleet to empower them to purchase electric vehicles to be deployed as green taxis in India.
The loan is for four years.
The partial guarantee is provided under the USD 200 million INR equivalent framework guarantee agreement that GuarantCo and Axis Bank signed in May 2022, which allows mobilisation of funds between USD 300 and 400 million in INR equivalent to finance the e-mobility ecosystem in India.
GuarantCo has provided a two-thirds on-demand credit guarantee to Axis Bank for this transaction. This is the second transaction closed under the framework agreement after providing Rs 2.5 billion (USD 30 million) loan to an impact-focused non-bank financial institution in the e-mobility ecosystem in India.
Rajiv Anand, Deputy Managing Director, Axis Bank said, “By collaborating with GuarantCo, we aim to empower companies that are working towards fostering sustainable transportation solutions to combat climate change. Through this blended finance transaction, we have supported a service model and mobilised development capital.”
Layth Al-Falaki, CEO at GuarantCo, said: “We are delighted to have closed the transaction with Everest Fleet under the framework guarantee agreement that we signed with Axis Bank in May 2022. This is the second transaction that we have closed under the Axis Bank agreement. It is expected to have a market transformation effect that we hope will help catalyse deployment of more electric vehicles by green ride hailing companies in India.”
He said they will continue to utilise the climate mitigation guarantee with Axis Bank to further the e-mobility ecosystem in India and to deliver against our climate action aims aligned with the PIDG 2030 strategy.