GreenCell Mobility Bags ₹3billion Green Financing for 350 Electric Buses in UP

GreenCell Mobility to cut 2.35 lakh tonnes of gross CO2 emissions with AC e-buses across 8 cities in UP

GreenCell Mobility, a leader in the Electric Mass Mobility sector, has secured Green Financing from a prominent Japanese financial institution Sumitomo Mitsui Banking Corporation (SMBC), for its Electric Bus initiative in Uttar Pradesh. 

This deal is the 1st Project Finance by a Japanese bank in India’s Electric Mobility sector, as per press release. Moreover, it is SMBC’s first Project Finance transaction in E-Mobility across the Asia Pacific region.

As per the agreement, SMBC has provided a long-term Project Finance facility to GreenCell Mobility for its 350 Electric Buses project in Uttar Pradesh. The deal worth INR 3.07 billion signifies a noteworthy advancement in both sustainable transportation and financial innovation in India. 

The project aims to cut around 2.35 lakh tonnes of gross CO2 emissions over its contract duration by facilitating the deployment of 9-meter fully equipped pure AC e-buses across 8 cities in Uttar Pradesh.

Devndra Chawla, MD & CEO of GreenCell Mobility, commented:

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.

GreenCell Mobility is the first Indian firm to secure Green Financing from Standard Chartered and SMBC (Source: GreenCell Mobility)
(Source: GreenCell Mobility)

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.

Tomofumi Watanabe and Luca Tonello, co-General Managers of Structured Finance Asia Pacific at Sumitomo Mitsui Banking Corporation, stated:

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.

Sumitomo Mitsui Banking Corporation (SMBC), based in Tokyo, is a major global financial institution and a key member of Sumitomo Mitsui Financial Group (SMBC Group).

With a rich history dating back to 1876, SMBC prioritises customer-centricity and offers seamless access to financial services throughout Asia Pacific. SMBC strives to build a prosperous and sustainable society for current and future generations.

Commenting on the transaction, Mr. Hiroyuki Mesaki, Country Head of SMBC India, stated:

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 more.

About GreenCell Mobility

GreenCell Mobility has been promoted by Eversource Capital, India’s leading climate impact investor. GreenCell is building a platform to provide Electric Mobility-as-a-Service (eMaaS), initially using electric buses and delivering the core value proposition of cheaper non-polluting on-demand shared transportation, charging infrastructure, and enabling products for the e-mobility value chain.